Question
Please answer the following questions as soon as possible Q81. Under the preferred habitat theory, the expectation that future short-term rates will be constant results
Please answer the following questions as soon as possible
Q81. Under the preferred habitat theory, the expectation that future short-term rates will be constant results in a yield curve that 1. slopes downward 2. is flat 3. slopes upward 4. is flat, slopes upward, or slopes downward, depending on the size of the term premium at each maturity
Q82. The principal-agent view of Fed motivation predicts that the Fed acts 1. in order to increase its power, influence, and prestige 2. to promote the interests of the general public 3. to promote the interests of the Fed's principal, the President of the United States 4. in order to make sure its agents, commercial banks, carry out its wishes
Q83. Which of the following will not shift the short-run aggregate supply function? 1. changes in the costs of non-labor inputs 2. changes in labor costs 3. changes in the price level 4. changes in the expected price level
Q84. A credit crunch refers to a 1. sharp rise in interest rates that banks charge on consumer loans 2. sharp rise in interest rates that banks charge on business loans 3. reduction in borrowers' ability to obtain credit at prevailing interest rates 4. decline in the willingness of households and firms to borrow from banks
Q85. Which of the following is the dominant means by which the Fed attempts to change the monetary base? 1. discount loans 2. changes in the required reserve ratio 3. moral suasion 4. open market operations
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