The second-largest economy in the world belongs to
A. Germany.
B. Japan.
C. China.
D. the United States.
Answer: C
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An interior solution to a consumer's utility maximization problem implies _________. (Select all that are true.)
the goods are perfect substitutes consuming more than an optimal amount of at least one good. consuming a positive amount of all goods. spending all income. spending less than full income. the goods are imperfect substitutes consuming a positive amount of one good and zero of the other good.
Refer to the following computer output from estimating the parameters of the nonlinear modelY = aRbScTdThe computer output from the regression analysis is: Based on the info above, if R decreases by 10% (all other things constant), Y will
A. decrease by 4.66%. B. increase by 46.6%. C. increase by 4.66%. D. decrease by 46.6%.
The U.S. Treasury yield curve:
A. always has a negative slope. B. always has a positive slope. C. assumes maturities are constant, and reflects the difference in risk. D. shows the relationship among bonds with the same risk characteristics but different maturities.
In response to the financial crisis and the Great Recession, the Fed took the following actions, except:
A. Reduced the federal funds rate to practically zero B. Lowered the required reserve ratio C. Initiated a few rounds of quantitative easing D. Engaged in a policy of forward commitment