Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
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Which of the following statements about capital markets is true?
A) At one time, the U.S. capital market was larger than all other capital markets combined, but that is no longer the case. B) The U.S. capital market is currently larger than all other capital markets combined. C) The largest capital markets in the world today are in East Asia and Latin America. D) There are currently large capital markets in Europe, but none in Asia.
The theory of adaptive expectations points out that when a shift in aggregate demand occurs, people and businesses will rationally expect its impact on output and employment to be temporary and its impact on the price level to be permanent
a. True b. False Indicate whether the statement is true or false
If we assume sticky prices in both foreign and domestic trading nations, the rate of pass-through from the nominal to the real exchange rate falls as:
a. the percentage of traded goods priced in foreign currencies rises. b. the percentage of traded goods priced in the domestic currency rises. c. the percentage change in the exchange rate exceeds the percentage increase in inflation. d. traders find new markets and are able to avoid nations with currency depreciations.
The difference between standard deviation and value at risk is:
A. standard deviation reflects the spread of possible outcomes where value at risk focuses on the value of the worst outcome. B. value at risk is expected value times the standard deviation. C. value at risk is a more common measure in financial circles than is standard deviation. D. nothing, they are two names for the same thing.