Savings accounts are the most liquid of all assets because they can be quickly and easily transferred
a. True
b. False
Indicate whether the statement is true or false
False
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Deposit insurance is only one type of government safety net. All of the following are types of government support for troubled financial institutions EXCEPT
A) forgiving tax debt. B) lending from the central bank. C) lending directly from the government's treasury department. D) nationalizing and guaranteeing that all creditors will be repaid their loans in full.
Refer to Figure 9.1. Assume the economy is initially at point A. The initial change resulting from a recession caused by an increase in oil prices is best represented by which short-run equilibrium combination of price level and real GDP?
A) P2; Y2 B) P3; Y3 C) P2; Y3 D) P3; Y2
An individual is currently 30 years old, wants to work until the age of 65 and plans on dying at the age of 85. How much will the individual need to have saved by the time he or she is 65 if he or she plans on spending $40,000 per year while retired? You can assume the individual can earn an interest rate of 5.0% and the $40,000 is in addition to any Social Security that may be received.
What will be an ideal response?
In the open-economy macroeconomic model, if foreign interest rates rise and the U.S interest rate stays the same then, U.S
a. net capital outflow rises, so the supply of dollars in the market for foreign exchange shifts right. b. net capital outflow rises, so the demand for dollars in the market for foreign exchange shifts right. c. net capital outflow falls, so the supply of dollars in the market for foreign exchange shifts left. d. net capital outflow falls, so the demand for dollars in the market for foreign exchange shifts left.