Expansionary monetary policy will:
A. Reduce the lending capacity for banks.
B. Raise interest rates.
C. Encourage people to borrow more money.
D. Reduce the equilibrium price level.
C. Encourage people to borrow more money.
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The table above shows Tom's total utility from milkshakes and sodas. Tom's total budget for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $.50 each
What quantity of milkshakes does Tom purchase at his consumer equilibrium? A) five B) six C) seven D) eight
To separate the income and substitute effects, the imaginary budget line should be
A) tangent to the new indifference curve and parallel to the new budget line. B) tangent to the new indifference curve and parallel to the old budget line. C) tangent to the old indifference curve and parallel to the new budget line. D) tangent to the old indifference curve and parallel to the old budget line.
The Gini coefficient provides a measure of
a. the level of poverty. b. the level of relative inequality. c. disguised unemployment. d. the rate of growth.
Considering interest-rate swaps, the swap rate is:
A. the rate being offered on U.S. Treasury securities of similar maturities. B. another name for the swap spread. C. a measure of overall risk in the economy. D. the benchmark rate plus a premium.