The Federal Reserve begins a major open market operation with the purchase of $100
billion in bonds. (The exchange rate is measured in foreign currency per dollar.) We
would expect
interest rates to [rise/fall] and exchange rates to [rise/fall].
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interest rates and exchange rates to fall
moral hazard
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When the act of insuring an event increases the likelihood that the event
will happen
,classical dichotomy
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separation of real and nominal variables
real variables, such as GDP and the real interest rate, are not affected by
monetary policy
When the government enters the capital (loanable funds) market to finance its deficit,
private investment [rises/falls] because the interest rate is [increased/decreased].
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private investment falls because the interest rate is increased
An increase in the number of demanders
a.) shifts demand to the left reducing price and quantity
b.) shifts demand to the left increasing price and reducing quantity
c.) shifts demand to the right reducing price and increasing quantity
d.) shifts demand to the right increasing price and quantity
e.) shifts demand to the right increasing price and reducing quantity
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d.) shifts demand to the right increasing price and quantity
A speculative attack on a country's currency
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speculators are betting the currency will be devalued
After the financial crisis the US government did all of the following except
a. bailed out large banks
b. bailed out automobile companies
c. bailed out AIG insurance company
d. bailed out homeowners
e. the US government did all of the above
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d. bailed out homeowners
A double coincidence of wants refers to
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the fact that for a barter trade to take place between twopeople, each
person must want what the other one has.
When considering a production function, how do you find real wage?
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Real wage = Marginal Product
, Federal funds rate
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the interest rate at which banks make overnight loans to one another
the interest rate charged by banks who lend in the market where banks
trade reserves
liquidity
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the ease with which an asset can be converted into money
The exchange rate is 8 rubles per dollar. The Russian price level is 400. The price level
in the US is 200. Find the real exchange rate.
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4 rubles per dollar
Which of the following causes a demand shock recession?
a. prices of important imported raw materials increase
b. defense spending is reduced as the country demobilizes following a war
c. household and firms expect higher rates of inflation
d. a natural disaster, such as a drought
e. all of the above
billion in bonds. (The exchange rate is measured in foreign currency per dollar.) We
would expect
interest rates to [rise/fall] and exchange rates to [rise/fall].
Give this one a try later!
interest rates and exchange rates to fall
moral hazard
Give this one a try later!
When the act of insuring an event increases the likelihood that the event
will happen
,classical dichotomy
Give this one a try later!
separation of real and nominal variables
real variables, such as GDP and the real interest rate, are not affected by
monetary policy
When the government enters the capital (loanable funds) market to finance its deficit,
private investment [rises/falls] because the interest rate is [increased/decreased].
Give this one a try later!
private investment falls because the interest rate is increased
An increase in the number of demanders
a.) shifts demand to the left reducing price and quantity
b.) shifts demand to the left increasing price and reducing quantity
c.) shifts demand to the right reducing price and increasing quantity
d.) shifts demand to the right increasing price and quantity
e.) shifts demand to the right increasing price and reducing quantity
Give this one a try later!
d.) shifts demand to the right increasing price and quantity
A speculative attack on a country's currency
,Give this one a try later!
speculators are betting the currency will be devalued
After the financial crisis the US government did all of the following except
a. bailed out large banks
b. bailed out automobile companies
c. bailed out AIG insurance company
d. bailed out homeowners
e. the US government did all of the above
Give this one a try later!
d. bailed out homeowners
A double coincidence of wants refers to
Give this one a try later!
the fact that for a barter trade to take place between twopeople, each
person must want what the other one has.
When considering a production function, how do you find real wage?
Give this one a try later!
Real wage = Marginal Product
, Federal funds rate
Give this one a try later!
the interest rate at which banks make overnight loans to one another
the interest rate charged by banks who lend in the market where banks
trade reserves
liquidity
Give this one a try later!
the ease with which an asset can be converted into money
The exchange rate is 8 rubles per dollar. The Russian price level is 400. The price level
in the US is 200. Find the real exchange rate.
Give this one a try later!
4 rubles per dollar
Which of the following causes a demand shock recession?
a. prices of important imported raw materials increase
b. defense spending is reduced as the country demobilizes following a war
c. household and firms expect higher rates of inflation
d. a natural disaster, such as a drought
e. all of the above
