Econ 201 week 5 quiz - Quiz for Week 5 Econ 201,4 Winter...

This preview shows page 1 out of 1 page.

Quiz for Week 5 - Econ 201,4. - Winter 2010 Chapter 4 (part2,Lectwe 2lI) L. Suppose that you expect inflation to rise sharply over the next several years, but most people do not. You would probably not wantlo: a) own 30 year Treasury bonds; b) borrow on a conventional, fixed rate mortgage to buy a home; c) buy stock in companies that own land; d) purchase commercial real estate; e) own gold. 2.Iwing Fisher discovered that over long periods of time and across different countries: a) nominal and real interest rates were about the same b) the nominal interest rate generally moved together with inflation, while the real interest rate remained relatively stable c) inflation rates tracked real interest rates closely d) real interest rates tracked inflation rates closely e) None of the above. 3. At the end of 2008 the yield on the 30 year 'nominal' Treasury bond was about 2.'70h, while the yield on the 30 year
Image of page 1

Unformatted text preview: about 4.6Vo and2Vo respectively. What does this tell you about how the outlook for inflation in the future changed during 2009? What might account for this change? Chapter 5 (lectwe 213) 4. On Jan.29 the media reported that "the economy grew by 5.7V0 in the fourth quarter." What does this really mean, and is it true that the economy was 5.7Vo larger on Dec 31 than on Sept 30? 5. The average time between recessions in the U.S. is closest to: a) six to nine months; b) fwo to three years; c) seven yea6; d) ten to twenty years. 6. The typical recession lasts roughly _ . a) several quarters; b) several years; c) only a few weeks; d) one decade. 7. If National Income grows roughly 3Vo per annum and population grows by IVo, per capita income doubles in about a) 72 years; b) 36 years; c) 25 years; Q .5 years END....
View Full Document

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern