The risk of a borrower defaulting on a loan is known as:
A. default risk.
B. credit risk.
C. loan risk.
D. asset risk.
Answer: B
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If the U.S. government wants to increase the price of the dollar relative to the euro, it could buy euros with dollars in the foreign exchange market
Indicate whether the statement is true or false
Which of the following events could result in the consumption function shifting from CF0 to CF1?
A) a decrease in wealth B) an increase in expected future income C) a decrease in disposable income D) an increase in disposable income E) an increase in the real interest rate
Suppose the Fed conducts an open market operation in which it buys government securities from a commercial bank. Why is there a multiplier effect on the quantity of money?
What will be an ideal response?
Cyclical unemployment is primarily caused by:
A. a large proportion of youthful workers in the labor force. B. fluctuations in aggregate demand. C. a lack of training on the part of job seekers. D. the failure of job seekers to search adequately for the available jobs.