Bond markets allow firms to pursue
a. equity financing.
b. debt financing.
c. limited growth policies.
d. government loans and subsidy programmes
Ans: b. debt financing.
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If there is 3 percent frictional unemployment, 4 percent structural unemployment, and -2 percent cyclical unemployment, then the natural rate of unemployment equals:
A. 5%. B. 1%. C. 2%. D. 7%.
If the nominal interest rate is 8 percent and inflation is 3 percent, approximately what is the real interest rate?
A) 11 percent B) 8 percent C) 5 percent D) 3 percent
Suppose that you decide that you no longer want to hold currency, and deposit all of your currency holdings to your checking account. What is the immediate or initial impact of this transaction on M1 and M2?
What will be an ideal response?
The U.S. spends more on education, and achieves far worse results. The underling cause of this disparity may have to do with: a. the cost per student spent b. the high degree of inequality in the U.S
c. the difference in property tax rates d. both the high degree of inequality in the U.S. and the difference in property tax rates