When the Fed sells short-term bonds and buys long-term bonds, it is engaging in
A) changing the discount rate.
B) forward guidance.
C) backward guidance.
D) a maturity extension program.
D
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Based on labor-market studies using regression analysis, once productivity-related characteristics are accounted for, the remaining wage gap between women and men is approximately
A) 2%. B) 5%. C) 15%. D) 20%.
When the interest rate on a bond is above the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________
A) demand; rise B) demand; fall C) supply; fall D) supply; rise
The risk adjusted discount rate
A) is the sum of the risk-free rate and the risk premium. B) includes risk in the denominator of the present value calculation. C) includes risk in the numerator of the present value calculation. D) All of the above
In the short-run macro model, cyclical unemployment is caused by insufficient spending
a. True b. False