Suppose interest rates are kept very low for a long time such that there is a spike in the amount of lending. Everything else held constant, this could cause ________ bubble
A) an irrational exuberance
B) a credit-driven
C) a stock
D) a debt-driven
B
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The real rate of interest equals 8%, and the expected rate of inflation equals 2%. The nominal rate of interest is
A) 2%. B) 6%. C) 8%. D) 10%.
The law of demand states that:
a. as the price of a good increases, more units are demanded. b. there is a direct relationship between the price of a good and the quantity of the good produced. c. there is a negative relationship between the price of a good and the quantity of the good demanded. d. there is an increase in the need for a good as the price of the good increases.
Explain how the demand for labor is determined
Considering only its direct effect on income, contractionary monetary policy tends to:
A. increase a trade deficit and increase the exchange rate. B. decrease a trade deficit and increase the exchange rate. C. increase a trade deficit and decrease the exchange rate. D. decrease a trade deficit and decrease the exchange rate.