In late 2008, the average risk premium rose because
A) investors feared a revival of inflation.
B) large tax increases in the United States reduced corporate profits and led to fears of increased defaults.
C) of the financial crisis.
D) of fraud in the market for municipal bonds.
C
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In the figure above, the equilibrium market price is $20. The producer surplus equals
A) $20. B) $1,500. C) $3,000. D) 150. E) $4,500.
A technology may be considered inappropriate if it
a. uses a lot of capital b. produces a product that few people want c. has a capital-labor ratio that exceeds the rental-wage ratio d. has a capital-labor ratio less than the rental-wage ratio e. none of the above
Suppose the required reserve ratio is 5%. If banks are conservative and choose not to loan all of their excess reserves, the actual money multiplier is
A) less than 20. B) greater than 20. C) equal to 20 D) equal to 5.
Economists at the Department of the Treasury
a. design U.S. currency and coins. b. provide Congress with the annual budget. c. enforce the U.S. antitrust laws. d. provide advice on tax policy to the President.