. True or false, explain you answers. Lenders sell bonds, and borrowers buy them. An increase...

. True or false, explain you answers.

Lenders sell bonds, and borrowers buy them.
An increase in reserve requirements raises the reserve ratio and decreases the money supply.
When the government runs a budget deficit, interest rates rise, and investment falls.

Joan uses some of her income to buy mutual fund shares. A macroeconomist would refer to Joan’s purchase as investment.

Expert Solution

Rahul Sunny answered 8 months ago

Explain why deflation can be so troubling to borrowers and lenders.

Explain why you think that borrowers of money and lenders of money view inflation differently. How...

Explain why you think that borrowers of money and lenders of money view inflation differently. How do borrowers normally react to high inflation rates? How do lenders normally react to high inflation rates? Discuss whether you feel that there are some positive (good) aspects to high inflation. If you don’t feel that there are any, explain why.

Does unanticipated inflation hurt borrowers or lenders more? Explain why this is the case.

Indicate whether the following statements are true or false, and then explain your answers: a. The...

Indicate whether the following statements are true or false, and then explain your answers: a. The marginal revenue from selling another unit of eggs can never be higher than the price of eggs. b. Because the price a seller charges is always greater than $0, the marginal revenue from selling another unit must also be greater than $0. 17. Consider the market for Pop Rocks depicted in the diagram below: a. If the Pop Rock industry were competitive, what would...

State whether the following statement is true or false AND explain why: "An increase in the...

State whether the following statement is true or false AND explain why: "An increase in the interest rate paid on excess reserves will always cause an increase in the federal reserve funds rate."

(True and False) Circle the correct answers. (True or False) A continuous metric is one derived...

(True and False) Circle the correct answers. (True or False) A continuous metric is one derived by counting something. (True or False) Categorical data is nominal data. (True or False) The tracking signal is the MAD divided by the running sum or errors. ((True or False) Ordinal data are ranked according to some relationship to one another. (True or False) Observations that radically different than the rest are called outlaws. (True or False) The second quartile and median are the...

True or False. Briefly explain your answers. a) If the dividend-price ratio is stable in the...

True or False. Briefly explain your answers. a) If the dividend-price ratio is stable in the long run, then a low dividend-price ratio today predicts either high returns or low dividend growth in the future. b) Since 250 stocks have estimates of Jensen's alpha that are statistically different from zero at the 5% level of significance, the CAPM does not provide a valid description of the relationship between risk and expected return for the stock market. c) If the nominal...

True or False (please explain the reasons of why you choose true or false) 1. A...

True or False (please explain the reasons of why you choose true or false) 1. A producer can charge a price far greater than marginal cost and earn large profits so long as barriers to entry prevent competitors from entering the industry. 2. Relative to competitive pricing, oligopoly pricing increases producers’ profits, reduces consumers’ surplus, and (in net) reduces social surplus.

True or false and explain 1. The paradox of thrift occurs when an increase in saving...

True or false and explain 1. The paradox of thrift occurs when an increase in saving leads to an increase in investment spending. 2. Suppose that the economy of Kennyland has an MPC of 0.8and an MPIM of 0.2. Currently, real GDP is $1800 and full-employment GDP is $2000. In this example, an increase in government spending of $40 will eliminate the GDP gap.

True or False. Indicate whether the statement is true or false. If false, explain in the...

True or False. Indicate whether the statement is true or false. If false, explain in the space provided the statement why it is false, or simply correct the statement. Smooth muscle contraction is regulated by the autonomic nervous system. During exercise, the sympathetic nerves that innervate the smooth muscles of bronchioles and arterioles regulate the contraction of these smooth muscles to increase ventilation and cardiac output. 2. Multiple choice: Choose one best statement. An infant born prematurely has neonatal respiratory...

Question