ECO 561 Week 5 Quiz During periods of increasinginflationary pressure, the Federal Reserve should: sell bonds to member banks todiscourage lending to the public Economists use two principle interest

ECO 561 Week 5 Quiz During periods of increasinginflationary pressure, the Federal Reserve should: sell bonds to member banks todiscourage lending to the public Economists use two principle interest

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During periods of increasing
inflationary pressure, the Federal Reserve should:
sell bonds to member banks to
discourage lending to the public



Economists use two principle interest
rates: nominal and real. The purpose of this distinction is to:
. account for and factor the
influences that inflation may have on the behavior that consumers and firms use
to determine how much to save out of their incomes



The Classical Theory of Asset Prices
assumes which of the following ideas?:
The value of an asset is
the discounted present value of expected cash flows, expected income is the
best information available, and the interest rate is the safe interest rate
plus a risk premium



 ECO 561 Week 5  



ECO 561 Week 5 Quiz