The coupon rate of a bond is equal to
A) the coupon payment.
B) the interest payment.
C) the interest rate.
D) the face value.
Answer: C
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If the MPC increase, the equilibrium levels of income and consumption will change in which of the following ways?
A) No change/No change B) No change/Increase C) Increase/No change D) Increase/Increase E) Decrease/Decrease
Which of the following is characteristic of a pure monopolist's demand curve?
A. Average revenue is less than price. B. Its elasticity coefficient is 1 at all levels of output. C. Price and marginal revenue are equal at all levels of output. D. It is the same as the market demand curve.
If some piece of information causes buyers to expect the price of a good to rise in the future, but sellers take the same information and believe it will have no impact on price, the result is
a. a decrease in supply today b. an increase in supply today c. a decrease in quantity demanded today d. an increase in demand today e. an increase in quantity demanded today
Which of the following schools of economic thought would advocate increasing the rate of growth of the money supply during a recession and decreasing the rate of growth of the money supply during inflations?
A. The classical school B. Keynesians C. Monetarists D. Supply-side economists