As bonds become a riskier asset, the demand for money ________ and, all else constant, the equilibrium interest rate ________
A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
A
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The coefficient of a linear regression equation indicates
A) the change in the dependent variable relative to a unit change in the independent variable. B) the change in the independent variable relative to a unit change in the dependent variable. C) the percentage change in the dependent variable relative to a unit change in the independent variable. D) the percentage change in the independent variable relative to a unit change in the dependent variable.
Economic activity moves from a trough into a period of ________ until it reaches a ________ and then into a period of ________.
A. expansion; peak; recession B. recession; peak; expansion C. expansion; trough; recession. D. recession; trough; expansion
The return on human capital
A) tends to be much greater than the return on physical capital. B) tends to be much lower than the return on physical capital. C) is similar to the return on physical capital. D) cannot be related to the return on physical capital since human capital and physical capital are so different.
If Brazil has a comparative advantage in the production of coffee compared to the United States, then
A. the United States has an absolute advantage in the production of coffee. B. Brazil can produce coffee at a lower opportunity cost than the United States. C. Brazil also has an absolute advantage in the production of coffee. D. the United States cannot produce coffee.