Which of the following changes shifts the AD curve down and to the left?
A) A temporary increase in government purchases
B) A rise in the nominal money supply
C) A decrease in corporate taxes
D) A decrease in consumer confidence
D
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One advantage of the Herfindahl index over the concentration ratio is that it:
A. gives extra weight to firms that are especially large. B. is easier to calculate. C. tells about only the top 50 firms in an industry. D. takes into account only the leading firms in an industry.
The exchange rate of currencies between countries affects the prices of the goods purchased and sold between them.
Answer the following statement true (T) or false (F)
A share of an oil company can be worth $10 with a probability of 0.50 and $20 with a probability of 0.50. What is the standard deviation of the price of this share?
A) 3 B) 5 C) 6 D) 8.5
Assume that the required reserve ratio for the commercial banks is 25 percent. If the Federal Reserve Banks buy $3 billion in government securities from the non-bank securities dealers, then as a result of this transaction, the lending ability of the commercial banking system will increase by:
A. $4.5 billion B. $9 billion C. $12 billion D. $15 billion