Residential construction (new houses and apartments) are included in which component of GDP?
A. Government purchases
B. Retail spending
C. Investment spending
D. Net exports
Answer: C
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When a competitive equilibrium is achieved in a market
A) the total net benefit to society is maximized. B) the total benefits to consumers are equal to the total benefits to producers. C) economic surplus equals the deadweight loss. D) all individuals are better off than they would be if a price ceiling or price floor was imposed by government.
A currency board is set up to:
a. manage free-floating currencies. b. gradually eliminate currency pegs. c. give a peg added durability. d. immediately eliminate currency pegs.
Refer to Table 9-3. If the required reserve ratio is 10%, what is the amount of excess reserves held by Alpha-Beta Bank?
A) $25 million B) $40 million C) $60 million D) $75 million
Why might we expect to see a high correlation between increases in the risk structure of interest rates and the yield curve becoming inverted?
What will be an ideal response?