The process of bundling loans together and buying and selling these bundles in a secondary financial market is called
A) open market operations.
B) securitization.
C) fractional reserve lending.
D) seigniorage.
Answer: B
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The relative poverty line defines poverty:
A. in relation to the income of the rest of the population. B. based on the expenditure on food relative to total income. C. as the price of basic food, clothing, shelter and utilities, and adjusts for geographic differences in the cost of living. D. None of these is true.
The LRAS curve is ____ with real output levels that ____
a. upward sloping; vary positively with the price level b. upward sloping; vary negatively with the price level c. vertical; are equal to the natural level of real output at all price levels d. vertical; can be either greater than or less than the natural level of real output
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.
The quantity of real GDP demanded increases if _______
A. the buying power of money increases B. the money wage rate rises C. the price level falls D. the nominal interest rate falls