X hits on this document

111 views

0 shares

2 downloads

0 comments

14 / 27

250 Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh Edition

63)

You observe that both short-term and long-term interest rates fall after an announcement by the Federal Reserve that the money supply has expanded over the past week. You might speculate that

(a)

market participants expect a surge in inflation in the next few months.

(b)

the efficient markets hypothesis has been refuted.

(c)

market participants do not expect a surge in inflation in the next few months.

(d)

both (a) and (b) of the above are true.

Answer:

Question Status: Revised

64)

You observe that both short-term and long-term interest rates rise after an announcement by the Federal Reserve that the economy appears to be growing rapidly. You might speculate that

(a)

market participants expect a surge in inflation in the next few months.

(b)

the efficient markets hypothesis has been refuted.

(c)

market participants do not expect a surge in inflation in the next few months.

(d)

both (b) and (c) of the above are true.

Answer:

Question Status: Revised

65)

You observe that both short-term and long-term interest rates rise after an announcement by the Federal Reserve that the economy appears to be growing rapidly. You might speculate that

(a)

market participants expect a surge in inflation in the next few months.

(b)

the efficient markets hypothesis has been refuted.

(c)

market participants expect the Fed to increase the money supply more rapidly to lower interest rates.

(d)

both (a) and (c) of the above are true.

Answer:

Question Status: Revised

66)

Expectations of _____ have a major impact on bond prices and interest rates through the _____ effect.

(a)

money growth; Fisher

(b)

money growth; Pigou

(c)

inflation; Fisher

(d)

inflation; Pigou

Answer:

Question Status: Previous Edition

67)

Expectations about the likelihood of _____ are probably the most important factors in determining the _____ structure of interest rates.

(a)

bankruptcy; time

(b)

bankruptcy; risk

(c)

inflation; time

(d)

inflation; risk

Answer:

Question Status: Previous Edition

Document info
Document views111
Page views117
Page last viewedSun Dec 04 04:17:13 UTC 2016
Pages27
Paragraphs1683
Words7804

Comments