Done Exam 1-2007

Done Exam 1-2007 - 1. a. b. c. d. e. f. g. h. i. j. k. l....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Hour Exam 1 1. (15 points) True or False. No explanation is required. a. In the U.S., Gross Domestic Product (GDP) only includes final goods and services. b. The Consumer Price Index measures the cost of all final goods and services produced within a country. c. If a Social Security pension is indexed for inflation, it usually increases by an amount equal to the percentage increase in the GDP deflator. d. A share of stock is an IOU promising its owner a set payment at a specified future date e. Debt financing refers to the corporate practice of selling shares of stock to raise money f. Citibank is a financial intermediary g. Usually, saving -> investment -> productivity -> GDP per person h. In a closed economy, investment equals national saving i. Development of mortgaged backed securities reduced risk spreading contributing to the recent credit crunch. j. The Jones’ purchase of a savings bond for their son's college education is an example of investment. k. The market for loanable funds determines the interest rate l. In the loanable funds market, if demand exceeds supply interest rates should rise
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/21/2008 for the course ECON 116 taught by Professor Rayfair during the Fall '07 term at Yale.

Page1 / 2

Done Exam 1-2007 - 1. a. b. c. d. e. f. g. h. i. j. k. l....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online