Which is true?
a. Barter is an efficient way to conduct business
b. Fiat money is currency backed by the nation's gold reserves
c. the US dollar is backed by gold
d. the Fed sets tax policy
e. a Gold Standard means that a person with currency can easily convert the currency into gold
Ans: e. a Gold Standard means that a person with currency can easily convert the currency into gold
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Which of the following statements is false?
A) Richer countries tend to be found in North America, Western Europe, and Japan. B) Countries with large populations tend to be rich. C) Growth of per capita GNP tends to be quite stable about 1.5-3 percent per year in industrialized countries. D) Over the past several decades, growth of per capita GNP tends to be higher on average in industrialized countries than in low or middle-income countries.
Suppose that real interest rates in the U.S. rise relative to real interest rates in other countries. This increase would make foreigners
a. more willing to purchase U.S. bonds, so U.S. net capital outflow would fall. b. more willing to purchase U.S. bonds, so U.S. net capital outflow would rise. c. less willing to purchase U.S. bonds, so U.S. net capital outflow would fall. d. less willing to purchase U.S. bonds, so U.S. net capital outflow would rise.
Which of the following is NOT a reason that people tend to deposit their funds with banks rather than lend their funds directly to other individuals?
A) asymmetric information problems B) adverse selection problems C) moral hazard problems D) liquidity problems
Econometrics is the use of statistics to _____ economic models
a. quantify and test b. try to disprove c. avoid the use of d. create e. simulate