The Federal Reserve's surveys of bank loan officers contain questions about:
A. the quantity and quality of loans.
B. the interest rates being charged.
C. the supply of and demand for loans.
D. all of the answers given are correct.
Answer: D
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If the expected gains on stocks rise, while the expected returns on bonds do not change, then
A) the demand curve for bonds will shift to the right. B) the supply curve for loanable funds will shift to the right. C) the equilibrium interest rate will fall. D) the equilibrium interest rate will rise.
How might the increase in the natural rate of unemployment in Europe be related to the increase in income inequality in the United States?
What will be an ideal response?
The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had which of the following consistent results?
A) a decline in real wages due to an upward shift of the production function B) an increase in the rental price of capital along with a healthy stock market response C) a decline in real wages due to a downward shift of the MPL curve D) an increase in the rental price of capital due to an upward shift of the production function E) none of the above
If a government runs a cyclically balanced budget, its revenue will equal its expenditure: a. each year
b. at each phase of the business cycle. c. over the course of the business cycle. d. only during expansions. e. only during recessions.