Sweep accounts
A) have made reserve requirements nonbinding for many banks.
B) sweep funds out of deposit accounts into long-term securities.
C) enable banks to avoid paying interest to corporate customers.
D) reduce banks' assets.
A
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Industria specializes in the production of heavy machinery. It exports machinery to the rest of the world and imports oil from the Gulf countries. Based on this information, we can conclude that Industria is a(n) ________ economy
A) closed B) communist C) command D) open
For U.S. consumers, the income elasticity of demand for fruit juice is 1.1. If the economy enters a recession next year and consumer income declines by 2.5%, what is the expected change in the quantity of fruit juice demanded next year?
A) -2.75% B) +2.75% C) -27.5% D) +27.5%
Which of the following moves the wage above its equilibrium value?
a. both compensating differentials and efficiency wages b. compensating differentials but not efficiency wages c. efficiency wages but not compensating differentials d. neither compensating differentials nor efficiency wages
A $1,000 bond, which matures in one year, has a price of $925. The interest rate on this bond is
A) 7.5%. B) 8.11%. C) 9.25%. D) 9.20%.