Indirect finance refers to the flow of funds from savers to borrowers through financial intermediaries
Indicate whether the statement is true or false
TRUE
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Refer to the figure above. The quota shown in the diagram equals
A) 200 units. B) 500 units. C) 1000 units. D) 1200 units.
When there are credit market frictions, Ricardian equivalence may not hold because
A) consumers cannot understand the implications of the government budget constraint. B) a tax cut in the present with a future increase in taxes works effectively like a loan. C) an increase in government saving is matched one-for-one by a decrease in private saving. D) social security is fully-funded.
Which of the following countries has the largest projected net debt as a percentage of their GDP for 2016? a. Japan b. The U.S
c. Germany d. Italy e. Australia
On which of the following assets are you most likely to earn interest income?
a. cash and currency b. checkable deposits c. money market deposit accounts d. gold and other precious metals e. All of the above are correct.