If a nation's Lorenz curve lies on the 45 degree line of income equality, then
A) more of the nation's income is received by the lowest 20 percent of families than by the highest 20 percent.
B) income is unequally distributed.
C) more of the nation's income is received by the highest 20 percent of families than by the lowest percent.
D) the income received by each 20 percent of families is 20 percent of the total income.
D
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The lower the exchange rate today, ceteris paribus, the
A) greater is the expected profit from buying U.S. dollars today and holding them. B) smaller is the expected profit from buying U.S. dollars today and holding them. C) greater is the expected profit from buying foreign currency today and holding it. D) smaller the quantity of U.S. dollars demanded in the foreign exchange market today.
Increases in the price level will
A) raise consumption because some goods and services are more affordable. B) raise consumption because real wealth increases. C) lower consumption because real wealth decreases. D) lower consumption because goods and services are less affordable.
The process of indirect finance using financial intermediaries is called
A) direct lending. B) financial intermediation. C) resource allocation. D) financial liquidation.
The rule of reason was an antitrust law guideline that emphasized the importance of ____ over ____
a. price; quantity b. quantity; price c. law; the economy d. size; behavior e. behavior; size