When the financial institution is hedging interest-rate risk on its overall portfolio, then the hedge is a
A) macro hedge.
B) micro hedge.
C) cross hedge.
D) futures hedge.
A
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________ is the study of how individuals, households, governments, and firms make choices and how those choices affect prices, the allocation of resources, and the well-being of other agents
A) Macroeconomics B) Monetary economics C) Microeconomics D) Growth theory
When real Gross Domestic Product (GDP) falls, which of the following will automatically occur?
A) an increase in income tax revenues B) a decrease in all tax rates C) a decrease in unemployment compensation expenditures D) a decrease in income tax revenues
A country facing a balance of payments deficit will change the pegged value of its currency; this is called a revaluation
Indicate whether the statement is true or false
Public goods are unlikely to be provided by the private sector because
A) the production of the good creates negative externalities. B) no one can be excluded from the consumption of the good. C) the consumption of the good creates negative externalities. D) the exclusion principle does not apply to public goods.