When the Fed buys government bonds on the open market,
A. the market rate of interest on government bonds are lowered AND the market rate of interest on corporate bonds are lowered.
B. the market rate of interest on corporate bonds are increased.
C. government yields drop but corporate yields rise.
D. government and corporate yields rise.
A. the market rate of interest on government bonds are lowered AND the market rate of interest on corporate bonds are lowered.
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Which of the following statements is TRUE?
A) An increase in the price of gasoline will decrease the demand for gasoline. B) An increase in the price of gasoline will increase the quantity demanded of gasoline. C) An increase in the price of gasoline will increase the supply of gasoline. D) An increase in the price of gasoline will increase the quantity supplied of gasoline.
If you invest $10,000 in a bond that earns 8% interest per year, how many years will it take to double your money?
A) 1 year and 3 months B) 2 years and 6 months C) 8 years D) 8 years and 9 months
The average percentage markup in the economy
a. is greater, the more competitive are market conditions b. is greater, the less competitive are market conditions c. is unaffected by the competitive conditions of the economy d. tends to be highly unstable from year to year e. tends to be stable from year to year, ensuring that the price level is stable from year to year
In the United States, consumers, businesses, governments, and foreigners participate in both the product and factor markets.
Answer the following statement true (T) or false (F)