The financial market events of September and October 2008 ________
A) sparked a sharp widening of the credit spread
B) signalled the success of the policy response to the financial crisis
C) reduced some of the uncertainty that had paralyzed financial markets
D) resulted from the federal funds rate having fallen below zero
A
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Let D= demand, S = supply, P = equilibrium price, and Q= equilibrium quantity
What happens in the market for walnuts if the Centers for Disease Control and Prevention announces that consuming a half cup of walnuts each week helps to lower levels of bad cholesterol? A) S increases, D no change, P decreases, Q increases. B) D increases, S no change, P and Q increase. C) D no change, S increases, P decreases, Q decreases. D) D and S increase, P and Q decrease.
The relationship between the price in the cash market and the price in the futures market is
A) nonexistent. B) negative. C) positive. D) None of the above.
Which of the following basic economic concepts most clearly provides the foundation for the long-run aggregate supply curve?
a. the law of demand b. the production possibilities curve c. the law of comparative advantage d. the law of diminishing marginal utility
Which international meeting resulted in the first major global environmental treaty, convincing many skeptics that such cooperation was indeed possible?
a. the Copenhagen Convention b. the Stockholm Declaration c. the Montreal Protocol d. the Kyoto Protocol