Highlights
Task:
Assignment Essays
1. What effect might a rise in stock prices have on consumers’ decisions to spend? (20 points)
2. Compare the rate of money supply growth and the business cycle. What typically happens to money supply growth before each recession? (40 points)
3. What is the typical relationship between interest rates on three-month Treasury bills, long-term Treasury bonds, and Baa (medium quality) corporate bonds? (40 points)
Objective Questions
1. Accountants refer to an economic event as
a. channelling funds from investors to savers.
b. creating inflation.
c. channeling funds from savers to investors.
d. reducing investment.
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