The unemployment rate was increasing from 6 percent to 7 percent could be interpreted as an increase in the natural rate of
a. inflation.
b. unemployment.
c. economic growth.
d. aggregate supply.
b
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All Union Bank pays $120,000 from its reserves to buy the corporate bonds of a leading real estate firm from Smith and Kim Bank. Smith and Kim Bank keeps the amount in its vault as reserves. In the given scenario, which of the following statements is true? a. $120,000 will be added as an asset for Smith and Kim Bank, while $120,000 will be added as a liability for All Union Bank. b. $120,000
will be added as a liability for Smith and Kim Bank, while $120,000 will be added as an asset for All Union Bank. c. The liabilities of both Smith and Kim Bank and All Union Bank will increase by $120,000. d. There will be no change in the value of assets or liabilities of both the banks.
The primary advantage of mutual funds is that they
a. always make a return that "beats the market." b. allow people with small amounts of money to diversify. c. provide customers with a medium of exchange. d. All of the above are correct.
The basic difference between macroeconomics and microeconomics is:
A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. B. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. C. microeconomics concentrates on the behavior of individual consumers, firms, and industries while macroeconomics focuses on the performance of the entire economy. D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
In the market for money, the price is
A. the interest rate. B. the wage rate. C. the premium. D. the exchange rate.