Which of the following is an example of the life-cycle motive for saving?
A. Jordan sets aside $200 per month in case she has to pay for a new roof for her house.
B. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.
C. Pat puts $400 per month in his 401(k) retirement account.
D. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.
Answer: C
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In 1937-1938, the number of unemployed
A. fell dramatically by about 5 million. B. fell slightly by about 1 million. C. rose slightly by about 1 million. D. rose dramatically by about 5 million.
Interest rates and the price of old or existing bonds are
A) directly related. B) independent of each other. C) inversely related. D) sometimes directly related and sometimes inversely related. E) There is not enough information to answer the question.
In a hyperinflation, the economy:
A. always collapses. B. can continue to function because people build expected inflation into wages and prices. C. will slow on its own to lower inflation. D. can continue to function but people are unwilling to hold any money.
The concept of an open economy means that
A. a nation's borders are open to flows of imports and exports. B. imports should be limited while exports should be expanded. C. imports and exports should be restricted. D. exports should be controlled but imports should be allowed in without restriction.