Which of the following securities has the least risk?
a. commercial paper
b. corporate bonds
c. corporate common stocks
d. U.S. Treasury bills
e. state and local government bonds
d. U.S. Treasury bills
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Suppose the Canadian government's budget is G = $100 and T = $100 while the U.S. government's budget is G = $800 and T = $800 . We can conclude that
a. both budgets are balanced and the balanced budget multiplier in Canada is 1 while in the U.S. it is 0.8 b. both budgets are balanced and the balanced budget multiplier in Canada is 1 while in the U.S. it is 8 c. both budgets are balanced and in each case the balanced budget multiplier is 1 d. The Canadian budget is balanced, the U.S. budget isn't, and the balanced budget multiplier applies only to Canada e. The U.S. budget is more balanced than the Canadian, and its balanced budget multiplier is higher than the Canadian's
If the Fed wants to increase bank reserves, it can:
A. Buy bonds. B. Raise the discount rate. C. Raise the reserve requirement. D. Sell bonds.
An increase in income will lead to an increase in demand for inferior goods.
a. true b. false
A decrease in supply means that the quantity supplied
A. does not fall at any price. B. falls only at the equilibrium price. C. falls at a few prices. D. falls at all prices.