An example of a buyer in a financial market would be:
A. corporations loaning money to other firm.
B. students saving for college.
C. families putting money away for the future.
D. families buying new houses.
Answer: D
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Dollar bills in the modern economy serve as money because
A) they can be redeemed for gold by the Federal Reserve. B) they are backed by the gold stored in Fort Knox. C) they have value as a commodity independent of their use as money. D) people have confidence that others will accept them as money.
If investment spending increases due to increased optimism in the business sector, which of the following would occur?
a. an increase in GDP, an increase in the price level, an increase in money demand, and an increase in the interest rate b. an increase in GDP, a decrease in the price level, an increase in money demand, and a decrease in the interest rate c. a decrease in GDP, a decrease in the price level, a decrease in money demand, and a decrease in the interest rate d. a decrease in GDP, a decrease in the price level, an increase in money demand, and an increase in the interest rate e. an increase in GDP, an increase in the price level, a decrease in money demand, and a decrease in the interest rate
If a country imposes a tariff on some good, then which of the following curves shifts right?
a. both the demand for loanable funds and demand in the market for foreign-currency exchange. b. the demand for loanable funds and demand in the market for foreign-currency exchange. c. demand in the market for foreign-currency exchange but not the demand for loanable funds. d. neither the demand for loanable funds nor demand in the market for foreign-currency exchange.