Which of the following could be considered a macroeconomic issue?
A. Twinkies goes bankrupt, and the entire snack industry experiences losses.
B. The unemployment rate in the US falls to 7.5 percent from 7.7 percent during the month of June.
C. The decision of Microsoft to offer a free upgrade to Windows 10.
D. T-Mobile and MetroPCS finalize a merger.
Answer: B
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Which of the following did not contribute to the failing of Freddie Mac and Freddie Mae?
A) Problems with adverse selection. B) Problems with moral hazard. C) Weak regulatory oversight. D) Unethical accounting practices.
The housing market crash that accompanied the 2007-2009 recession has had severe negative effects on the U.S. economy. Since December 2008, the target federal funds rate has been 0.0-0.25%
Assuming the Fed keeps the real interest rate constant, a recovery in the housing market would cause the ________, and the output gap would ________. A) MP curve to shift up; become less negative B) MP curve to shift down; become more negative C) IS curve to shift to the left; become more negative D) IS curve to shift to the right; become less negative
In the monetarist view, the money supply affects the economy
A. through investment spending and government spending. B. indirectly through interest rates. C. directly, apart from interest rates. D. by altering the size of the money multiplier.
What is one of the biggest benefits of trade that is hard to measure?
a. the transfer of goods from rich countries to poor countries b. the transfer of knowledge from poor countries to rich countries c. the transfer of knowledge from rich countries to poor countries d. the transfer of goods from poor countries to rich countries