Which of the following interest rates will be least affected by a shift in monetary policy that alters the money supply?
a. a three-month certificate of deposit
b. interest on checking accounts
c. a one-year bank loan
d. a thirty-year home mortgage
D
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Table 7-4 ? 6 346 490 600 692 775 846 ? 5 316 448 548 632 705 775 ? 4 282 400 490 564 632 692 CAPITAL 3 245 346 423 490 548 600 ? 2 200 282 346 400 448 490 ? 1 141 200 245 282 316 346 ? 0 1 2 3 4 5 6 ? LABOR ? ? ? ? ? The production relationship in Table 7-4 indicates a process characterized by
A. decreasing returns to scale. B. constant returns to scale. C. increasing returns to scale. D. increasing then decreasing returns to scale.
All of the following are components of aggregate expenditure except
A) government spending. B) net export spending. C) actual investment spending. D) consumption spending.
Assume the government decides to reduce spending in order to reduce the budget deficit, which it financed by borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with demand for real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real goods market with aggregate supply shifting to the left. d. Start the analysis in the real goods market with aggregate supply shifting to the right. e. Start the analysis in the real credit market with demand for real credit shifting to the left.
Which of the following is not generally considered to be a major cure for insolvency?
a. Equity infusions. b. Expansionary monetary policies. c. Financial restructuring. d. New management strategies. e. Asset liquidations.