Given the formula PDV = $F/(1 + R)T, the PDV is smaller when the number of years is ______ and when the interest rate is ______.
A. smaller; lower
B. smaller; higher
C. larger; lower
D. larger; higher
D. larger; higher
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Why has M2 grown more quickly than M1 in recent decades?
A) Currency in circulation has declined. B) People own more shares of stock than in the past. C) The amount of funds in CDs and money market mutual funds shares has grown faster than currency or checking deposits. D) Most people use debit cards instead of checking accounts.
In a dynamic economy under ideal conditions:
a. the unemployment rate should be near zero. b. some unemployment would be present due to workers temporarily being out of work while changing jobs. c. unemployment would tend to move upward slightly as prices increased. d. unemployment would tend to move slightly downward as unemployment compensation benefits increased.
Every economy has a(n) _______ given by the fundamental factors of growth.
A. actual inflation rate B. actual growth rate C. potential growth rate D. potential inflation rate
The terrorist attack on the World Trade Center on September 11, 2001:
A. did not have any significant impact since the risk on all bonds increased. B. caused the price of U.S. Treasury securities to fall and the yields on corporate bonds to fall. C. caused the demand for U.S. Treasury securities to fall and the demand for corporate bonds to rise. D. triggered a flight to quality in the bond market.