satttttsss

morgan a financial advisor has told her clients the following things, which of her statements is not correct?

"us government bonds generally pay a higher rate of interest than corporate bonds "

if the interest rate is 4.5 percent, what is the present value of a payment of 500 to be made one year from today

478.47

you have some estimates of national account numbers for closed economy for the coming year. under one set of expectations gov purchases will be 30 billion, transfer payments will be 10 billion and taxes will be 45 billion. under another set of expectations, GDP will be 200 billion, taxes will be 50 billion, transfer payments will be 20 billion, consumption will be 120 million and investment will be 40 billion. based on these numbers the first case should be

5 billion surplus and the second case a 10 million deficit

to increase money supply, the fed could

decrease discount rate

bank regulators impose capital requirements in order to

ensure banks can pay off depositors

When a firm wants to borrow directly from the public to finance the purchase of new equipment, it does so by selling shares of stock

false

in a closed economy, each unit of output is either consumed by households or invested

false

the natural rate of unemployment is constant over time

false

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

frictionally unemployed. Frictional unemployment exists even in the long run

the efficient markets hypothesis says that beating the market consistently is

impossible. many studies find that beating the market is at best extremely difficult

the federal reserve was created

in 1913 by congress

other things the same, an increase in wages above their equilibrium level

increases structural unemployment and increases the natural rate of unemployment

mixter concrete company is considering buying a new cement truck. the owners and their accountants decide that this is the profitable thing to do. before they can buy the truck the interest rate and price of the trucks change. in which case do these changes both make them less likely to buy the truck?

interest rates rise and trick prices rise

suppose banks decide to hold more excess reserves relative to deposits. other things the same this action will cause the

money supply to fall. to reduce the impact of this the fed could lower the discount rate

which of the following is financial intermediary

mutual fund

if there is a surplus of loanable funds, then

neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium

other things the same, bonds are most likely to have higher interest rates if they have

no tax exemptions and long terms

a high percentage of price-earnings ratio for a stock indicates that either the stock is

overvalued or people are relatively optimistic about the corporations prospects

frictional unemployment is thought to explain relatively

short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment

in 2009, the US government's budget deficit increased substantially. other things the same, this means the

supply of loanable funds shifted to the left

reserve requirements are regulations concerning

the amount of reserves banks must hold against deposits

a problem that the fed faces when it attempts to control the money supply is that

the fed does not control the amount of money that households choose to hold as deposits in banks

if their is a shortage of loanable funds, then

the quantity demanded is greater than the quantity supplied and the interest rate will rise

if there is a surplus of loanable funds then

the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium

according to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium

true

if interest rate is 8%, then the present value of 1000 to be received in 4 years is 735.03

true

if the fed decreases reserve requirements, the money supply will increase

true

studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed

true

the bureau of labor statistics produces data on unemployment, types of employment, length of the average workweek, and the duration of unemployment

true

there is no easy way for policy makers to reduce the economy's natural rate of unemployment

true

when the soviet union began breaking up in the late 1980's, cigs began replacing the rubble as the medium of exchange even through the ruble was legal tender. the cigs provide an example of commodity money

true

graph, wealth at bottom .... utility function. what is measured along the vertical axis

utility

which of the following is not correct

when unions raise wages above equilibrium, the quantity of labor supplied decreases and the quantity of labor demanded increases

if the apple corporation sells a bond

borrowing directly from the public

minimum wage laws, unions and efficiency wages contribute to

both structural unemployment and the natural rate of unemployment

the monetary policy of taxi is controlled by the country's central bank known as the bank of taxi. the local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of taxi hold 300 million taxes of required reserves, 75 million taxes of excess reserves, have issues 7,500 million taxes of deposits and hold 225 million taxes of tazian treasury bonds. tazians prefer to use only demand deposits and so all money is on deposit at the bank. Suppose the bank of taxi bought 50 million taxes of tazian treasury bonds from the banks. suppose also that both the reserve requirement and the percentage of deposits held as excess reserves stay the same. by how much does the money supply change?

1000 million taxes

jorge deposited 1000 into an account 3 years ago. the first two years he earned 5% interest, 3rd year he earned 6 % interest. how much money does gorge have in his account today

1168.65

ana deposited 10000 into an account 3 years ago. the first year she earned 12% interest, the second year she earned 8 % interest and the third year she earned 4% interest. how much money does she have in her account today?

12579.84

how many people were unemployed in baltivia in 2009

1600 1400+200-1600... number of adults who were waiting to be recalled to a job which they had been laid off number of adults who do not have a job, are available for work, and have tried to find a job in the past 4 weeks

assuming the interest rate is 6%, which of the following has the greatest present value?

285 today