When the interest rate earned on government bonds is high, most people will try to hold:
A. more bonds and less cash.
B. less bonds and more cash.
C. more bonds and more cash.
D. less bonds and less cash.
A. more bonds and less cash.
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The short-run Phillips curve is based upon labor contracts that reflect a given expected _____
a. price level b. unemployment level c. money supply d. aggregate demand e. unemployment rate
A rapid, unexpected increase in the inflation rate could make real interest rates negative
a. True b. False Indicate whether the statement is true or false
Theoretically, the price of a field hand on the New Orleans slave market would have
a. varied directly with the price of cotton. b. risen as interest rates fell. c. risen when the importation of slaves became illegal. d. All of the above are true.
When demand is elastic, a decrease in price will cause
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded.