If the interest rate is below the equilibrium interest rate, then the quantity __________ of money exceeds the quantity __________ of money, and there is a __________ of money
A) supplied; demanded; shortage
B) supplied; demanded; surplus
C) demanded; supplied; shortage
D) demanded; supplied; surplus
C
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Among countries that purchased U.S. stocks and bonds in 2015, China was the biggest customer, accounting for over 50 percent of all purchases
Indicate whether the statement is true or false
Alt-A mortgages are
A) mortgages which are bundled together by financial institutions and sold to investors. B) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages. C) mortgages issued to borrowers with flawed credit histories. D) government-backed mortgages issued by Fannie Mae and Freddie Mac.
Suppose a person cashes his payroll check and holds all the funds in the form of currency. Everything else held constant, total reserves in the banking system ________ and the monetary base ________
A) remain unchanged; increases B) decrease; increases C) decrease; remains unchanged D) decrease; decreases
Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset today, your inflation-adjusted capital gains would be zero due to inflation over the last eight years
The capital gains tax is 28 percent. If you sold the asset today your tax liability would be A) zero. B) $28,000. C) $8,400. D) cannot be determined without more information.