Treasury bills are government securities that

A. mature in more than five years.
B. mature in less than one year.
C. have no maturity date.
D. have an infinite maturity date.


Answer: B

Economics

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When the price level increases people:

A. demand a smaller quantity of goods and services in the aggregate. B. feel more wealthy. C. have the same real value of assets, regardless of the change in the price level. D. want to spend more, but can’t due to the prices of all goods and services going up.

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Suppose Jerry and Joseph are two tenants sharing an apartment having a private lawn. They have agreed to share the costs of cleaning and maintaining it. Jerry would be considered an opportunist if he plants some flowers in this lawn at his own expense without consulting Joseph

Indicate whether the statement is true or false

Economics

Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?

a. The quantity of real loanable funds per time period rises and GDP Price Index rises. b. The quantity of real loanable funds per time period falls and GDP Price Index falls. c. The quantity of real loanable funds per time period rises and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.

Economics

The Federal Reserve Bank of Minneapolis once chartered a small airplane to deliver money to a commercial bank that was experiencing a "mad run" on the bank

Indicate whether the statement is true or false

Economics