Which of the following is true?
A. Long-term bond yields move together but short-term yields do not.
B. U.S. Treasury Bill yields are lower than the yields on commercial paper.
C. Long-term bond yields are usually the same as short-term yields.
D. Short-term bond yields move together but long-term yields do not.
Answer: B
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Based on the graph showing the effects of an investment tax credit or a technological change, a technological change that increases demand for loanable funds would lead to ______.
a. a shift in the demand curve for loanable funds to the left
b. a shift in the supply curve for loanable funds to the left
c. a decrease in loanable funds from Q2 to Q1
d. an increase in loanable funds from Q1 to Q2
If consumers can easily switch to a close substitute when the price of a good increases, demand for that good is likely to be:
A. inelastic. B. elastic. C. unit elastic. D. perfectly inelastic.
If personal income taxes and business taxes decrease, then this will:
A. increase aggregate demand and aggregate supply. B. decrease aggregate demand and aggregate supply. C. increase aggregate demand and decrease aggregate supply. D. decrease aggregate demand and increase aggregate supply.
Bundling of complements to create value strategically usually leads to lower prices for the consumer, ________.
A. less volume sold, and lower profits B. greater volume sold, and lower profits C. greater volume sold, and greater profits D. less volume sold, and greater profits