Increased liquidity in the banking system occurs when ________
A) people buy more bonds
B) the demand for real money balances declines
C) banks buy more bonds from the central bank
D) all of the above
E) none of the above
E
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Of the choices given below, Jimmy, whose utility of wealth schedule is given above, prefers
A) option A: $300 with certainty. B) option B: 50 percent chance of $200 and 50 percent chance of $400. C) option C: 50 percent chance of $200 and 50 percent chance of $700. D) option D: 90 percent chance of $400 and 10 percent chance of $0.
According to the saving and investment equation, if net foreign investment rises by $60 million,
A) domestic investment will rise by $60 million. B) private saving will fall by $60 million. C) national saving will fall by $60 million. D) national saving will increase by $60 million.
If the owners of a business are receiving total revenues just sufficient to cover all of their explicit and implicit costs, then they are:
A. earning a normal profit. B. doing worse than their next best alternative. C. earning an economic loss. D. doing better than their next best alternative.
Refer to the above table. Real GDP in 2020 is
A. 103.1. B. 824.8. C. 775.9. D. 128.9.