Consider a small economy in which consumers buy only two goods: apples and pears. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that
a. the number of apples bought by the typical consumer is equal to the number of pears bought by the typical consumer in each year.
b. neither the number of apples nor the number of pears bought by the typical consumer changes from year to year.
c. the percentage change in the price of apples is equal to the percentage change in the price of pears from year to year.
d. neither the price of apples nor the price of pears changes from year to year.
b
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A decrease in the required reserve ratio would be
a. a restrictive policy because it lowers the amount of total reserves in the banking system. b. a restrictive policy because it lowers the amount of excess reserves in the banking system. c. an expansionary policy because it raises the amount of required reserves in the banking system. d. an expansionary policy because it raises the amount of total reserves in the banking system e. an expansionary policy because it raises the amount of excess reserves in the banking system.
Fractional ownership of a firm is represented by
A. a corporate bond. B. retained earnings. C. a share of stock. D. capital gains.
In 2008, the many people became unable to make payments on their mortgages and instead defaulted on them. As a result, the ________ of loanable funds curve shifts ________ and real interest rate ________
A) supply; leftward; increases B) demand; leftward; increases. C) supply; rightward; falls. D) demand; rightward; decreases.
If two large firms from different industries merge,
a. industry concentration rises b. industry concentration falls c. the total assets of the top 200 firms in the country will stay the same d. industry concentration rises in one market and falls in the other e. industry concentration is not affected