Which of these economic variables is procyclical?
A) consumer spending
B) stock prices
C) the government bond spread
D) all of the above
E) none of the above
D
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In the above figure, if the relevant aggregate demand curve is AD2, what type of gap exists and how large is it?
A) inflationary gap of $1 trillion B) recessionary gap of $500 billion C) inflationary gap of $500 billion D) recessionary gap of $1 trillion
Each of the four firms in an industry has a market share of 25 percent. The Herfindahl-Hirschman Index equals
A) 3,600. B) 100. C) 625. D) 25. E) 2,500.
The view of mercantilists can be summarized as follows
A) to sell less to strangers yearly than we consume of theirs in value. B) to sell more to strangers yearly than we consume of theirs in value. C) to consume more of theirs in value than we sell to strangers. D) to consume the same amount as theirs in value as we sell to strangers. E) to sell gold and silver to strangers in exchange for services.
Which of the following is not a benefit to lenders/investors of financial intermediation?
a. Higher yield than the direct market. b. Lower risks than the direct market. c. More diversification than the direct market. d. All the above are benefits to lenders. e. Lower transaction costs than the direct market.