Marking to market refers to
A) the determination of the prices of options contracts by the interaction of demand and supply.
B) the determination of the prices of futures contracts by the interaction of demand and supply.
C) the settlement of gains and losses on futures contracts each day.
D) the settlement of gains and losses on forward contracts each day.
C
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The government's decision to come to the aid of farmers was made, in part, because the government feared that
a. farms were becoming too large and inefficient as a result of continuous changes in farm technology b. because food prices had become so high, low-income families were unable to maintain a minimal nutritional diet c. falling farm prices would depress the farm economy and that depression would spread to other sectors of the economy d. price supports would distort farm prices e. insufficient food supplies would be produced to feed a growing population
A point inside the production possibilities curve is ____ while a point outside the curve is ____
A. Attainable; unattainable B. Unattainable; attainable C. Below the maximum possible; the maximum possible D. The maximum possible; below the maximum possible
Suppose there is a fiscal expansion in the current period. This fiscal expansion will tend to cause a smaller increase in current output when
A) an increase in current output causes an increase in expected future output. B) an increase in the current interest rate causes expectations of expansionary monetary policy in the future. C) an increase in the current interest rate causes an increase in expected future interest rates. D) both A and B E) all of the above
Game theory analysis of macro policy suggests that as voters become more short-sighted
A) policy makers will be tempted to raise taxes. B) policy makers will be forced to balance the budget. C) policy makers will adopt policies today to achieve balanced budgets in the future. D) all of the above E) none of the above