Which of the following will cause a real depreciation?
A) an increase in E
B) a reduction in P
C) a reduction in P
D) all of the above
E) none of the above
B
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Mr. Pierpont has wealth of $200,000. He wants to keep at least $80,000 in bonds at all times, and will shift $10,000 into bonds from his checking account for each percentage point that the interest rate on bonds exceeds the interest rate on his
checking account. If the interest rate on checking accounts is 4% and the interest rate on bonds is 9%, how much does Mr. Pierpont keep in his checking account? A) $50,000 B) $70,000 C) $130,000 D) $150,000
In the short run, a monopolist:
a. always earns an economic profit. b. never earns an economic profit. c. never earns an accounting profit. d. None of the above are correct.
According to Baumol and Blinder, from the demand side, an increase in the price level causes aggregate expenditures to
A. fall, resulting in a lower level of equilibrium income. B. fall, resulting in a higher level of equilibrium income. C. rise, resulting in a higher level of equilibrium income. D. rise, resulting in a lower level of equilibrium income.
In 1935, what changes were made to the Federal Reserve System?
(A) A central group of banks were authorized to lend to each other in times of need. (B) There was an increase of Federal District Banks from 10 to 12 banks. (C) The problems of regional banks were no longer the concern of Federal District Banks. (D) The Federal Reserve System was given more centralized power.