When interest rates fall, a bank that perfectly hedges its portfolio of Treasury securities in the futures market
A) suffers a loss.
B) experiences a gain.
C) has no change in its income.
D) may either gain, lose or see no change in its income.
C
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If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium
A) price of bikes definitely increases. B) price of bikes definitely decreases. C) quantity of bikes definitely increases. D) quantity of bikes definitely decreases.
When the U.S. real interest rate falls ________
A) U.S. dollar assets earn a higher return relative to foreign assets B) it makes U.S. exports more expensive in foreign currencies C) imports will decrease D) all of the above E) none of the above
By how much did the Doha round of negotiations increase the world economy per year?
a. $100 to $150 billion b. $150 to $200 billion c. $200 to $250 billion d. $165 to $385 billion
Whether prices or real GDP exhibit the greater response to increased aggregate demand depends on the degree of capacity utilization in the economy
a. True b. False Indicate whether the statement is true or false