Why does the segmented markets theory suggest think that bonds of different maturities are not perfect substitutes for each other?
What will be an ideal response?
Long-term bonds are subject to greater interest-rate risk than short-term bonds. and long-term bonds are less liquid than short-term bonds.
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When there is a decrease in labor supply, real wages are likely to
A) remain the same. B) decrease. C) increase. D) allow less leisure time.
If the inflation rate is 3 percent and the real interest rate is 3 percent, then what is the nominal interest rate?
What will be an ideal response?
Changes in which of the following shifts the supply curve of hamburgers?
A) a rise in the price of soda, a complement for hamburgers B) new research that establishes a link between hamburgers and heart problems C) an increase in the price of meat used to produce hamburgers D) an economy-wide decrease in income because of a long recession
A demand elasticity coefficient is a measure of the sensitivity of quantity demanded to a change in one of the determinants of demand
Indicate whether the statement is true or false