The interest rate promised when a bond is issued is called the:
A. coupon rate.
B. real rate of interest.
C. discount rate.
D. dividend rate.
Answer: A
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If the instruments are not exogenous,
A) you cannot perform the first stage of TSLS. B) then, in order to conduct proper inference, it is essential that you use heteroskedasticity-robust standard errors. C) your model becomes overidentified. D) then TSLS is inconsistent.
Money is destroyed when
A. loans are made. B. checks written on one bank are deposited in another bank. C. loans are repaid. D. the net worth of the banking system declines.
A government report that makes working in a particular industry more attractive to workers will most likely ________ the number of workers hired in that industry, and ________ the wage paid to those workers.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
The above table has information about the hypothetical economy of Robotica. Based on the data, the size of M2 is
A) $2,600 billion. B) $2,610 billion. C) $610 billion. D) $600 billion. E) $1,710 billion.