Collateral is ________ the lender receives if the borrower does not pay back the loan
A) a liability
B) an asset
C) a present
D) an offering
B
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Which of the following ensures full employment in the Classical model?
A) Wage and price flexibility B) The equation of exchange C) Inventory adjustment D) Constant velocity
Banks historically have used the discount window:
A. sparingly, because it is often seen as a sign of financial trouble for a bank. B. often, because it provides instant access to needed funds for banks. C. often, because its low interest rate can serve as a source of profit for banks. D. only during times of economic boom, when there is a high demand for loans.
The demand curve facing a firm
a. indicates the quantity of output that customers will purchase from that firm, at various prices b. shows the minimum cost of producing any level of output c. is drawn assuming that the firm is operating in the short run d. indicates how much output a profit-maximizing firm will produce, at various prices e. is downward sloping because consumers have less money to spend, the more output they purchase
"Every major contraction in the U.S. economy has either been created or greatly exacerbated by monetary instability. Every major inflation has been caused by monetary expansion." Which of the following economists made this statement?
a. Adam Smith b. John Maynard Keynes c. Milton Friedman d. Paul Samuelson