If there is no change in the quantity of currency, the purchase of $100 million of Treasury securities by the Federal Reserve will cause reserves at banks to
A) decrease by $100 million.
B) increase by $100 million.
C) decrease by less than $100 million.
D) increase by less than $100 million.
B
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A monetary expansion ________ stock prices due to a decrease in the ________ and an increase in the ________, everything else held constant
A) reduces; future sales price; expected rate of return B) reduces; current dividend; expected rate of return C) increases; required rate of return; future sales price D) increases; required rate of return; dividend growth rate
The key to diversification is that the risks should be:
A. positively correlated. B. uncorrelated. C. negatively correlated. D. easy to reduce.
Trade between the United States and Guatemala
a. benefits both the United States and Guatemala. b. is a losing proposition for the United States because Guatemalan labor is less expensive than U.S. labor. c. is a losing proposition for Guatemala because capital is much more abundant in the U.S. than in Guatemala. d. is a losing proposition for Guatemala because U.S. workers are more productive than Guatemalan workers.
Ryan experiences an increase in his wages. The hours of labor that he supplies to the market would increase if
a. the income effect is larger than the substitution effect. b. the substitution effect is larger than the income effect. c. neither the income effect nor the substitution effect apply to Tom's labor-leisure tradeoff. d. Ryan views both labor and leisure as inferior goods.