When central bankers are acting preemptively they are:
A. aggressively trying to hit a zero inflation target.
B. usually focused on reducing expansionary gaps.
C. letting markets work and taking a wait and see approach.
D. taking bold steps to stabilize the economy.
Answer: D
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Which of the following is an argument made in support of tariffs and import quotas?
a. protecting infant industries b. promoting national defense c. preventing product dumping d. all of the above
If a decrease in the demand for corn leads to economic losses for corn farmers,
a. some existing corn farmers will exit the industry. b. the price of corn will remain low in the long run due to the economic losses. c. the suppliers of corn will suffer long-run economic losses. d. all of the above are correct.
Susan is planning to invest in one of four stock portfolios, and her financial advisor has given her details regarding the risk associated with each portfolio. Which of the following portfolios would you expect to have the highest average annual rate of return?
a. A portfolio with a standard deviation of 3%. b. A portfolio with a standard deviation of 6%. c. A portfolio with a standard deviation of 9%. d. A portfolio with a standard deviation of 12%.
The money demand curve relates ________ to the ________.
A. the aggregate quantity of money demanded; nominal interest rate B. the aggregate quantity of money demanded; aggregate demand C. aggregate demand; nominal interest rate D. the aggregate quantity of money demanded; price level