Refer to Figure 18-5. The middle 20 percent of households
A) earn 20 percent of the society's total income. B) earn 36 percent of the society's total income.
C) earn 48 percent of the society's total income. D) earn 50 percent of the society's total income.
A
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Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the
A) fact that Ms. Yellen faces scarcity. B) concept of entrepreneurship. C) fact that Ms. Yellen responds to incentives. D) use of capital.
Based on risk-return tradeoffs observable in the financial marketplace, which of the following securities would you expect to offer higher expected returns than corporate bonds?
a. U.S. Government bonds b. municipal bonds c. common stock d. commercial paper e. none of the above
In an open? economy, if the federal government has a budget? deficit, the trade balance is more likely to be
A. a surplus. B. either a deficit or surplus; it depends on macroeconomic conditions. C. a deficit. D.balanced.
Suppose one U.S. dollar can purchase a half pound of strawberries in the United States. After converting dollar to pesos, one U.S. dollar can now purchase a full pound of strawberries in Mexico. These values represent:
a) a real exchange rate. b) a nominal exchange rate. c) a purchasing power parity rate. d) a transaction rate.