If the expected return on bonds increases, all else equal, the demand for bonds increases, the price of bonds ________, and the interest rate ________
A) increases; decreases
B) increases; increases
C) decreases; decreases
D) decreases; increases
A
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If the real interest rate in the United States increases, foreign investors will ________ their demand for U.S. dollars because they desire to ________ more U.S. financial assets
A) increase; buy B) increase; sell C) decrease; buy D) decrease; sell
In the short run, fiscal and monetary policy cause unemployment and inflation to move in opposite directions because
a. the Fed and Congress rarely agree on policy. b. one controls aggregate demand, the other controls aggregate supply. c. both policies control only aggregate supply. d. both policies control only aggregate demand.
Gross Domestic Product is equal to the market value of all the goods and services ____________ in a given period of time.
Fill in the blank(s) with the appropriate word(s).
Which of the following in NOT a source of profit?
A. Innovation B. Wages C. Exercise of monopoly power D. Risk taking