Answer to Question 1
D
Answer to Question 2
a. Industrial production is a coincident indicator, as it tends to rise and fall at the same time as real GDP and other measures of aggregate economic activity. Since industrial production is falling, the economy is likely in a recession.
b. The number of building permits issued for new private housing units is a leading indicator, as it tends to rise and fall in advance of real GDP and other measures of aggregate economic activity. Since the number of issued permits is beginning to decline, the economy is likely heading for a recession.
c. Commercial and industrial loans are lagging indicators, as they tend to rise and fall after real GDP and other measures of aggregate economic activity. Since these loans are starting to rise, the economy is likely already in an expansion.
d. The average prime interest rate charged by banks is a lagging indicator, as it tends to rise and fall after real GDP and other measures of aggregate economic activity. Since the prime rate is beginning to fall, the economy is likely already in a recession.
e. The M2 money supply is a leading indicator, as it tends to rise and fall in advance of real GDP and other measures of aggregate economic activity. Since M2 is beginning to rise, the economy is likely heading for an expansion.
Answer to Question 3
(a) The lender could hedge the risk by selling futures contracts on Treasury bills.
(b) The speculator could buy futures contracts on Treasury bills.
Sociologists use income, education, and occupational prestige to measure social class. For most ...
Income Inequality in the United States: 1947–2009
Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product
Keeping your feelings to yourself may increase your stress level
Construct a Lorenz curve that shows income distribution in this society.
Three queens, fertile females in species that have a reproductive division of labor.