A) Junk bonds are those that yield low interest rates. B) Junk bonds are those that never mature. C) Junk bonds refer to bonds that have been resold many times. D) Junk bonds are those issued by financially weak corporations. A) Junk bonds are those that yield low interest rates. B) Junk bonds are those that never mature. C) Junk bonds refer to bonds that have been resold many times. D) Junk bonds are those issued by financially weak corporations.

Exam 8: Saving, Investment, and the Financial System

Suppose that the government finds a major defect in one of a company's products and demands that it be taken off the market. Which of the following would we expect?

(Multiple Choice)

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Question 21

If the inflation rate is 3 percent and the real interest rate is 5 percent, what is the nominal interest rate?

(Multiple Choice)

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Question 22

What would an increase in the budget deficit most likely do to investment spending?

(Multiple Choice)

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Question 23

Alberta buys a paint sprayer and a lift for her car customizing shop. A macroeconomist would refer to these purchases as investment.

(True/False)

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Question 24

What do people who buy newly issued stock in a corporation such as Rockwood Pottery Ltd. provide?

(Multiple Choice)

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Question 25

Suppose a country has a consumption tax that is similar to a provincial sales tax. If its government eliminates the consumption tax and replaces it with an income tax that includes an income tax on interest from savings, which of the following would most likely happen?

(Multiple Choice)

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Question 26

Which of the following terms refers to the length of time until a bond matures?

(Multiple Choice)

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Question 27

If a share of stock in Skylight Chili sells for $75, the retained earnings per share are $5, and the divided per share is $2, then the price-earnings ratio is 15.

(True/False)

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Question 28

Which of the following best defines stock indexes?

(Multiple Choice)

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Question 29

What makes Y = C + I + G + NX an identity?

(Multiple Choice)

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Question 30

Suppose that in a closed economy GDP is 10,000, consumption is 6500, and taxes are 2000. What value of government expenditures would make national saving equal 1000?

(Multiple Choice)

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Question 31

Suppose that in a closed economy GDP is equal to 10,000, taxes are equal to 2500, consumption equals 6500, and government expenditures equal 2000. What is private saving?

(Multiple Choice)

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Question 32

If you know that Alberta Dreams Corporation, a travel equipment and clothing company, has revenues of $30 million and accounting costs of $10 million, you know that its earnings are $20 million.

(True/False)

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Question 33

The country of Aquilonia does not trade with any other country. Its GDP is $30 billion. Its government purchases $5 billion worth of goods and services each year, collects $7 billion in taxes, and provides $3 billion in transfer payments to households. Private saving in Aquilonia is $5 billion. What is consumption?

(Multiple Choice)

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Question 34

What are junk bonds?

(Multiple Choice)

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Question 35

Which of the following best defines the nominal interest rate?

(Multiple Choice)

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Question 36

In a closed economy, what does (Y - T - C) represent?

(Multiple Choice)

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Question 37

Which of the following best describes the relationship between government deficit and government debt?

(Multiple Choice)

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Question 38

Since what year has the Dow Jones Industrial Average been computed regularly?

(Multiple Choice)

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Question 39

Which of the following does the slope of the demand for loanable funds curve represent?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 208

Suppose that the government finds a major defect in one of a company's products and demands that it be taken off the market. Which of the following would we expect?

If the inflation rate is 3 percent and the real interest rate is 5 percent, what is the nominal interest rate?

What would an increase in the budget deficit most likely do to investment spending?

Alberta buys a paint sprayer and a lift for her car customizing shop. A macroeconomist would refer to these purchases as investment.

What do people who buy newly issued stock in a corporation such as Rockwood Pottery Ltd. provide?

Suppose a country has a consumption tax that is similar to a provincial sales tax. If its government eliminates the consumption tax and replaces it with an income tax that includes an income tax on interest from savings, which of the following would most likely happen?

Which of the following terms refers to the length of time until a bond matures?

If a share of stock in Skylight Chili sells for $75, the retained earnings per share are $5, and the divided per share is $2, then the price-earnings ratio is 15.

Which of the following best defines stock indexes?

What makes Y = C + I + G + NX an identity?

Suppose that in a closed economy GDP is 10,000, consumption is 6500, and taxes are 2000. What value of government expenditures would make national saving equal 1000?

Suppose that in a closed economy GDP is equal to 10,000, taxes are equal to 2500, consumption equals 6500, and government expenditures equal 2000. What is private saving?

If you know that Alberta Dreams Corporation, a travel equipment and clothing company, has revenues of $30 million and accounting costs of $10 million, you know that its earnings are $20 million.

What are junk bonds?

Which of the following best defines the nominal interest rate?

In a closed economy, what does (Y - T - C) represent?

Which of the following best describes the relationship between government deficit and government debt?

Since what year has the Dow Jones Industrial Average been computed regularly?

Which of the following does the slope of the demand for loanable funds curve represent?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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