Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial management theory and practice

Authors: Eugene F. Brigham and Michael C. Ehrhardt

12th Edition

978-0030243998, 30243998, 324422695, 978-0324422696

More Books

Students also viewed these Finance questions