If market interest rates increase, the prices of existing bonds will
A) decrease.
B) not change.
C) increase.
D) decrease if Real GDP decreases and increase if Real GDP increases.
A
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Why does the labor supply curve eventually bend backwards?
What will be an ideal response?
Automatic stabilizers are so-named because
A) they are automatically undertaken by the Federal Reserve Bank to reduce budget deficits. B) they occur automatically when real GDP changes. C) the policy suggestions of the Council of Economic Advisors are automatically followed. D) the policy suggestions of the Office of Management and Budget are automatically followed.
Discouraged workers
A. are primarily manufacturing employees who have been displaced by machinery. B. are comprised mainly of the cyclically unemployed, laid off because of recession. C. are people who have stopped looking for work because they believe they will not be able to find employment. D. are those workers who leave regular employment and work in the underground economy. E. are temporarily between jobs.
Which of the following is an example of a positive externality?
A. something obtainable at a zero price B. a discount for consumers buying in large quantity C. increased purchases of landscaping services by a homeowner that boost a neighbor's property value D. a lower crime rate for a community in which residents receive more education