Analysis - Economic Analysis

Question 1

When GDP drops for _ consecutive quarters, the economy is said to be in a _____

Answer 1

2 consecutive is a recession

Question 2

If GDP drops for at least ____, downturn has become a ____

Answer 2

18 months, becomes a depression

Question 3

The leading indicator of inflation trends is the ____

Answer 3

PPI

Question 4

The interest rates, from lowest to highest, are _____

Answer 4

fed funds < discount rate < broker loan rate < prime rate

Question 5

M-1 is all currency in circulation and all _______

Answer 5

checkable deposits

Question 6

M-2 is M-1 plus time deposits ______

Answer 6

time deposits of less than $100,000

Question 7

M-3 is M-1 + M-2 plus time deposits over ______

Answer 7

$100,000

Question 8

L is the broadest money definition and includes M-1 through M-3, plus any _____

Answer 8

money market instruments

Question 9

Do open market operations affect the national debt level?

Answer 9

NO - only issuance and redemption by the treasury affects the national debt level