04 Jun TRUE / FALSE
Question
SESSION 1
TRUE / FALSE
1.
True
False
A side benefit of international trade is that it links national interests
and increases the opportunity costs of war.
2.
True
False
When C + Ig = GDP in a private closed economy, S = Ig and there
are no unplanned changes in inventories.
3.
True
False
The risk-free interest rate is the rate on long-term U.S. government
bonds.
4.
True
False
Bond prices and interest rates are directly or positively related.
5.
True
False
The public debt is the accumulation of all deficits and surpluses
that have occurred through time.
6.
True
False
The M2 money supply may be larger or smaller than the M1 money
supply depending on the size of small-denominated time deposit
balances and Money Market Mutual Fund balances held by
individuals.
7.
True
False
Excess reserves are the amount by which required reserves exceed
actual reserves.
8.
True
False
The public debt is held as Treasury bills, Treasury notes, Treasury
bonds, and U.S. savings bonds.
9.
True
False
The equilibrium price level and equilibrium level of real GDP
occur at the intersection of the aggregate demand curve and the
aggregate supply curve.
10.
True False
Investment is highly stable; it increases over time at a very steady
rate.
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