If the Fed increases the money supply, then 1/P falls, so the value of money falls falls, so the value of money rises rises, so the value of money falls rises, so the value of money rises

When a person is voluntarily employed longer than they need to be this is known as _______ unemployment 1. technological 2. frictional 3. structural 4. cyclical

Which of the following is a money supply reducing policy action? 1. Lowering the discount rate  2. Buying government securities in the open market  3. Increasing reserve requirements 4. Keeping interest rates unchanged

You take out a student loan $5000 at 5% interest. What is the amount you will owe in 10 years if the interest compounds monthly? (Round to the nearest dollar) 1. $8235 2. $8750           3. $9012            4. $9800

Some people argue that there are two advantages to holding mutual funds. The first is that mutual funds provide an inexpensive way to hold a diversified portfolio. The second is that because of their expertise mutual fund managers should be able to consistently beat the market. Which of the following does the evidence show? Diversification does reduce risk and mutual funds typically outperform the market Diversification does reduce risk, but mutual funds do not typically outperform the market Diversification does not reduce risk but mutual funds typically outperform the market Diversification does not reduce risk and mutual funds do not typically outperform the market

Suppose you will receive $500 at some point in the future. If the annual interest rate is 5 percent, then the present value of the $500 is 1. $411.26 if the $500 is to be received in 5 years and $338.95 if the $500 is to be received in 10 2 . $348.28 if the $500 is to be received in 5 years and $242.60 if the $500 is to be received in 10 3. $291.11 if the $500 is to be received in 5 years and $272.89 if the $500 is to be received in 10 4. $291.11 if the $500 is to be received in 5 years and $236.49 if the $500 is to be received in 10

Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time.   Refer to Optimism. Which curve shifts and in which direction? aggregate demand shifts right aggregate demand shifts left aggregate supply shifts right aggregate supply shifts left

Index funds buy all the stocks in a given stock index promise to beat the market by a certain percentage known as an index provide a return that is adjusted for changes in the consumer price index buy industries within a particular category of the North American Industry Classification System

Stock prices go up based off the companies          future expected profits risk exposure    liquidity increases            leverage capability

Loss aversion is a behavioral concept that suggests: 1. People are more willing to take risks when facing potential losses. 2. People feel the pain of losses more than they experience pleasure from equivalent gains. 3. People consistently make perfectly rational decisions when faced with potential losses. 4. People are indifferent to whether they gain or lose in economic transactions.