What is the inflation rate using base year 1?
A) 10%.
B) 15%.
C) 20%.
D) 25%.
C
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Risk Premium refers to
A) the average difference over a long period of the interest rate on long-term bonds and the interest rate on the short-term federal funds rate. B) the average difference over a long period of the interest rate on short-term financial instruments and the interest rate on the discount rates. C) the difference between the corporate bond rate and the risk-free rate of Treasury bonds. D) the difference between prime rate and the discount rate.
If consumers become less confident and begin to borrow and spend less, what will happen in the dynamic AD/AS model?
A. The short-run aggregate supply curve will shift downward. B. The long-run aggregate supply curve will shift to the left. C. The aggregate demand curve will shift to the left. D. The aggregate demand curve will shift to the right.
The U.S. encouraged developing countries to continue opening their economics to the global market during the term of Bill Clinton as the president.
Answer the following statement(s) true (T) or false (F)
People hold money as opposed to financial assets because money
A) earns interest. B) is perfectly liquid. C) earns no interest. D) earns a higher return than other financial assets.