According to the theory of hysteresis, a prolonged recession will:
a. decrease the natural rate of unemployment.
b. increase cyclical unemployment.
c. decrease the sacrifice ratio.
d. increase the natural rate of unemployment.
D
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The Keynesian demand for real balances can be expressed as
A) Md = f(i,Y). B) Md/P = f(i). C) Md/P = f(Y). D) Md/P = f(i,Y).
As global financial markets become more intertwined, the Fed has
A) less control over monetary policy. B) more control over monetary policy. C) more control over fiscal policy. D) less control over fiscal policy.
As the price of good X rises, the demand for good Y falls. Therefore, goods X and Y are
A) substitutes. B) normal goods. C) complements. D) inferior goods. E) none of the above
The yield of a stock is the
A) dividend divided by the closing price per share. B) dividend divided by the average daily price of the stock. C) closing price divided by the 52-week low price. D) dividend divided by the opening price per share.