If bond investors think they lack enough details to evaluate the likelihood of defaults on certain bonds, this will result in higher:
A) expected return
B) liquidity
C) information costs
D) expected inflation
C
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Supply-side economists argue that decreasing marginal tax rates
A) increases productivity and shifts the AS curve to the right. B) increases productivity and shifts the AS curve to the left. C) increases productivity and shifts the AD curve to the left. D) due to the Ricardian equivalence, has no impact on the economy.
The Federal Reserve System consists of which of the following?
A. Federal Deposit Insurance Corporation and Controller of the Currency B. Board of Governors and the 12 Federal Reserve Banks C. U.S. Treasury Department and Bureau of Engraving and Printing D. Federal Open Market Committee and Office of Thrift Supervision
Production for war and environmental clean-up services are not included in GDP
a. True b. False Indicate whether the statement is true or false
You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is the most you would have been willing to pay for a ticket. Your boss called, and she is looking for someone to cover a shift on Saturday at the same time as the concert. You would have to work 4 hours and she would pay you $11/hr. The psychic cost to you of working is $2/hr. What is the opportunity cost of going to the concert?
A. $35 B. $1 C. $9 D. $36