Monetary policy is more effective in an open economy than in a closed economy
Indicate whether the statement is true or false
FALSE
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What is the approximate price of a $10,000 coupon bond that pays $1,000 in one year and $1,000 in two years at maturity? The effective yield on the bond is 6 percent
A) $10,000 B) $10,730 C) $10,900 D) $12,000
Which of the following is true of unit banking?
a. It is the dominant form of banking in the United Sates. b. It occurs when national banks open interstate branch offices. c. It implies that every financial institution should maintain its account with the Federal Reserve. d. It occurs when a bank is not allowed to operate in more than one location. e. It refers to the monopolization of the banking industry.
A decrease in the supply of money will lead to a(n)
A) increase in equilibrium real GDP and an increase in equilibrium price level. B) increase in equilibrium real GDP and a decrease in equilibrium price level. C) decrease in equilibrium real GDP and an increase in equilibrium price level. D) decrease in equilibrium real GDP and a decrease in equilibrium price level.
The marginal propensity to consume (MPC) is the slope of the:
A. GDP curve. B. disposable income curve. C. consumption function. D. autonomous consumption curve.