An international financial crisis will likely occur when
A. the rate of money supply growth is not the same in all nations.
B. newly-acquired political freedom in a country leads some interest groups to form a coalition limiting competition.
C. many international investors look at the behavior of a few large investors to determine when funds should be withdrawn from a particular country.
D. there is an increase in portfolio investment.
Answer: C
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Do all valuable items have price tags?
A. No, because some valuable items have no opportunity cost. B. Yes, because everything has its price. C. Yes, because price is the measure of opportunity cost. D. No, some have no explicit price on them. E. Yes, because only items that can be sold in markets have value.
When changes in taxes and government purchases occur in the economy without explicit action by Congress, such changes are referred to as
A. discretionary fiscal policy. B. automatic stabilizers. C. cyclical stabilization. D. implicit stabilization.
If there is a decrease in the expected future profitability of capital,
A) the aggregate demand curve will shift right. B) the aggregate demand curve will shift left. C) the aggregate demand curve will become steeper. D) the aggregate demand curve will be unaffected.
What is one difference between stocks and bonds?
A) Bonds earn a higher rate of return than stocks. B) Stocks earn a higher rate of return than bonds. C) Bonds are purchased at a bank, while stocks are purchased through the federal government. D) Stocks represent partial ownership in a firm, while bonds do not.