________ sell shares to investors and use the money to buy short-term securities
A) Mortgage-backed securities dealers
B) Hedge funds
C) Money market mutual funds
D) Shadow banks
Answer: C
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Unemployment that develops as old industries die off is known as ________
A) cyclical unemployment B) structural unemployment C) frictional unemployment D) voluntary unemployment
Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and nominal value of the domestic currency rises. b. The real risk-free interest rate falls, and nominal value of the domestic currency falls. c. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. d. The real risk-free interest rate rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis Table 1.3, what is gained by producing at point M rather than point N?
A. 21 combs. B. 1 comb. C. 2 combs. D. 23 combs.
The "paired observation" of (-10, -6) means
A. x = -10, y = -6. B. that the distance between the two points will be 16. C. the origin is at -10 and -6. D. x = -6, y = -10.