Financial intermediaries are institutions that
A) produce money for the federal government.
B) regulate the activities of stock and bond markets.
C) act as middlemen in the process of directing funds from savers to investors.
D) oversee the activities of government institutions such as the Federal Reserve.
Answer: C) act as middlemen in the process of directing funds from savers to investors.
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Refer to the scenario above. If the economy is currently on F2 and produces Y3 level of output, a leftward shift of the labor demand curve with no change in productivity will cause output to ________
A) increase from Y3 to Y4 B) decline from Y3 to Y1 C) decline from Y3 to Y2 D) increase from Y3 to Y5
According to the Keynesian cross model, equilibrium occurs where: a. the 45-degree line intersects the aggregate expenditure line
b. the potential GDP line intersects the aggregate expenditure line. c. the 45-degree line intersects the potential GDP line. d. the potential GDP line intersects the nominal GDP line.
An increase in the money supply will reduce interest rates and increase the price of bonds.
a. true b. false
A high school dropout with poor work habits, little experience, and no vocational training, who has been out of work for three years but is actively seeking employment, would be _____ unemployed.
A. Frictionally B. Structurally C. Cyclically