Which of the following is an example of a forward contract?
A. A farmer near Ames and a local ethanol plant agree on a price and quantity of corn to be delivered later today.
B. A farmer near Ames and Key Co-Op agree on a price and quantity of corn to be delivered 6 months from now.
C. A farmer near Ames goes short on a futures contract.
D. A farmer in Ames sells corn to a Canadian firm.
Ans: B. A farmer near Ames and Key Co-Op agree on a price and quantity of corn to be delivered 6 months from now.
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During World War II, whenever interest rates would ________ and the price of bonds would begin to ________, the Fed would make open market purchases
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Nominal GDP in a country was $8759.9 billion in 2014 and $9254.6 billion in 2015. The GDP deflator was 102.86 for 2014 and 104.37 for 2015
(a) What is the growth rate of nominal GDP between 2014 and 2015? (b) What is the inflation rate from 2014 to 2015? (c) What is the growth rate of real GDP from 2014 to 2015?