The overall drop in stock prices that began in 1929 and continued through 1932 was due to:
A. the exuberant confidence in the rising value of the stock market in general.
B. a panicked massive sale of stocks which caused the stock prices to plummet.
C. the decline in profitability of companies.
D. dropping stock prices causing a rational sale of certain stocks.
Answer: B
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Which of the following statements is true?
A) The GDP per capita has almost been constant since the beginning of the 20th century in most of the western world. B) The average GDP per capita of a nation at a particular point of time is not the same as the income of all individuals in that nation. C) GDP per capita decreases with a decrease in population and increases with an increase in population, GDP remaining unchanged. D) GDP per capita is a useful to tool to study the disparities in standards of living in a country.
Which of the following is not appropriate, if we live in a world of fixed exchange rates?
A) monetary approach to the exchange rate B) elasticities approach C) monetary approach to the BOP D) absorption approach
If the economy is inflationary, the Fed would most likely:
a. encourage banks to provide loans by buying government securities. b. encourage banks to provide loans by raising the discount rate. c. encourage banks to provide loans by selling government securities. d. restrict bank lending by selling government securities. e. restrict bank lending by lowering the federal funds rate.
If scarcity were eliminated,
a. all goods would be free. b. no one would have to make any choices. c. everyone could have all they want at no cost. d. all of the above are true.