Suppose the money supply is set to grow at 12%, real GDP grows at 4%, and the nominal interest rate on Aaa corporate bonds is 10%
Using the quantity theory of money and the Fisher equation, the expected real interest rate on Aaa corporate bonds should average A) -2%.
B) 2%.
C) 6%.
D) 7%.
B
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The Federal Reserve System was established by the Federal Reserve Act of
A. 1913. B. 1945. C. 1955. D. 1933.
Small-denomination time deposits are
A) considered part of near money. B) included in the definition of both M1 and M2. C) the same as transaction deposits. D) included in the definition of M1, but not in M2.
Refer to the figure above. If Y is labor intensive then according to the HO theory, this country should be ________ abundant
A) capital B) labor C) both capital and labor D) Can't tell without more information
If trade opens up between the two formerly autarkic countries, Australia and Belgium, then
A) the real income of both countries may increase. B) the real income of Australia and of Belgium will increase. C) the real income of Australia but not of Belgium will increase. D) the real income of neither country will increase. E) the real income of both countries will increase.