The saving schedule shown in the diagram would shift downward if, all else equal:
A. the average propensity to save increased at each income level.
B. the marginal propensity to save rose at each income level.
C. consumer wealth rose rapidly because of a significant increase in stock market prices.
D. the real interest rate rose.
C. consumer wealth rose rapidly because of a significant increase in stock market prices.
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Which of the following is likely to happen if the government of a country introduces a subsidy on job creation?
A) The labor demand curve shifts to the right. B) The labor supply curve shifts to the right. C) The labor supply curve shifts to the left. D) The labor demand curve shifts to the left.
Which of the following policy tools did the Fed create in 2008 to address the financial crisis?
i) quantitative easing ii) credit easing iii) open market operations A) ii only B) i and ii C) i and iii D) i only E) ii and iii
A bank that wants to monitor the check payment practices of its commercial borrowers, so that moral hazard can be reduced, will require borrowers to
A) place a bank officer on their board of directors. B) place a corporate officer on the bank's board of directors. C) keep compensating balances in a checking account at the bank. D) purchase the bank's CDs.
Hedge funds have been criticized for
A) their heavy use of short selling. B) their inability to mobilize a large amount of funds. C) forcing quick price changes that reduce market inefficiencies. D) excessive use of hedging strategies.