Marking to market is a process that:
A. involves a transfer of risk.
B. ensures that the buyers and sellers receive what the contract promises.
C. buyers and sellers can request for an additional fee when the contract is created.
D. always requires the sellers of contracts to transfer funds to the buyers of contracts.
Answer: B
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The impact of a change in taxes on income is likely to be less than the effect resulting from a change in government spending since ________
A) the federal government typically operates in a deficit situation B) exports and imports can only assume positive values, but net exports can be positive or negative C) changes in the supply of money will be necessary if government spending is increased D) changes in taxes exert an indirect impact on total spending through changes in consumption
One result of an unanticipated reduction in aggregate demand would be that
A) fewer firms would be hiring. B) more firms would be hiring. C) there would be no change in hiring. D) the price level would rise.