The practice of dividing packages of debts into slices, each with different risk and return characteristics, is called:
A. bundling.
B. leveraging.
C. tranching.
D. pooling.
Answer: C
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In a small Asian country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600. Based on this information, what is the slope of the per-worker production function in this range?
A) 0.06 B) 6.6 C) 66.6 D) 666
The slope of the aggregate supply curve is
A. perfectly vertical. B. perfectly horizontal. C. upward. D. downward.
Which would decrease investment demand?
a. A decrease in the stock of capital goods on hand b. A decrease in business taxes c. An increase in the rate of technological change d. An increase in the cost of acquiring capital goods
In making an investment decision, a business firm is most interested in the:
A. nominal interest rate. B. real interest rate. C. nominal interest rate minus the real interest rate. D. the future supply of loanable funds.