Suppose Jo's savings after working for 2 years is $90,000 . Assuming she saves all of her income and the rate of growth of her income is constant at 10 percent over the 2-year period, her initial annual income must have been around _____
a. $49,630
b. $36,980
c. $65,897
d. $74,380
d
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Refer to Figure 26-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) sell Treasury bills B) decrease the required-reserve ratio C) buy Treasury bills D) decrease income taxes
Research seems to suggest that corporate culture
A) is unrelated to stock performance. B) is closely related to stock performance. C) helps determine the cost of capital. D) is easily transferable across organizations.
In the open-economy macroeconomic model, at the equilibrium real interest rate, the amount that people (including government) want to save equals desired quantities of domestic investment and net capital outflow
a. True b. False Indicate whether the statement is true or false
Financial intermediaries typically require mortgage borrowers to have homeowner's insurance and do credit checks before making the loan
a. The insurance requirement and the credit check are both designed primarily to reduce adverse selection. b. The insurance requirement and the credit check are both designed primarily to reduce the risk of moral hazard. c. The insurance requirement is designed primarily to reduce adverse selection; the credit check is designed primarily to reduce the risk of moral hazard. d. The insurance requirement is designed primarily to reduce the risk of moral hazard; the credit check is designed primarily to reduce adverse selection.