The margin requirement is the maximum percentage of the price of a(n)
a. bond that can be used as collateral to borrow from a bank
b. investment good that can be used as collateral to borrow from a bank
c. home mortgage that can be used as collateral to borrow from a bank
d. stock that can be used as collateral to borrow from a bank
e. an asset that can be used as collateral to borrow from the Fed
D
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According to your authors, the United States would probably not have experienced tremendous economic growth between 1800 and 1870 were it not for
A) slavery. B) sharecropping. C) antitrust legislation. D) balanced federal budgets. E) technological innovation.
An increase in the interest rate causes
A) a movement down along the money demand curve. B) the money demand curve to shift to the left. C) a movement up along the money demand curve. D) the money demand curve to shift to the right.
The price elasticity of demand for beef is estimated to be 0.60 (in absolute value). This means that a 20 percent increase in the price of beef, holding every thing else constant, will cause the quantity of beef demanded to
A) decrease by 12 percent. B) decrease by 26 percent. C) decrease by 32 percent. D) decrease by 60 percent.
Relative to the Nash equilibrium in the Cournot model, the Nash equilibrium in the Bertrand model with homogeneous products
A) results in the same output but a higher price. B) results in the same output but a lower price. C) results in a larger output at a lower price. D) results in a smaller output at a higher price. E) any of the above may result.