A common measure of income distribution is the:
a. Bergson curve
b. Kornai Curve
c. Feldstein curve
d. The Hayek Curve
e. the Gini coefficient
Question 2 - The yield curve is the relationship between the:
a. Real interest rate and expected inflation rate.
b. Domestic yield and foreign yield.
c. Real yield (i.e., interest rate) and actual inflation.
d. Nominal yield and time to maturity of a security.
e. Nominal yield on corporate securities and the yield of government securities.
Question 3 - Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and net nonreserve international borrowing/lending balance in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises and net nonreserve international borrowing/lending balance becomes more positive (or less negative).
b. The real risk-free interest rate falls and net nonreserve international borrowing/lending balance becomes more negative (or less positive).
c. The real risk-free interest rate rises and net nonreserve international borrowing/lending balance becomes more negative (or less positive).
d. The real risk-free interest rate and net nonreserve international borrowing/lending balance remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 4 - In the twelfth century, the bulk of world population lived in:
a. Asia
b. Africa
c. Europe
d. The European offshoots
e. none of the above
Question 5 - Which of the following is not a potential supplier of real loanable funds to the real loanable funds market?
a. Domestic savers.
b. Foreign savers.
c. Domestic businesses.
d. Foreign governments.
e. All of the above are potential suppliers.
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