If the interest rate on a bond is below the equilibrium interest rate, there is an excess ________ of bonds and the bond price will ________
A) demand; rise
B) demand; fall
C) supply; rise
D) supply; fall
D
You might also like to view...
A particularly severe recession is called a(n):
A. lull. B. growth recession. C. depression. D. super recession.
An increase in investment spending would cause the FE line to
A) shift to the right. B) shift to the left. C) remain unchanged. D) remain unchanged if Ricardian equivalence holds; otherwise, shift to the right.
If the United States unilaterally removed all of its trade restrictions and moved toward a policy of free trade, international trade theory indicates that
a. U.S. residents would gain, but people in other countries would be worse off. b. people in other countries would gain, but U.S. residents would be worse off. c. both U.S. residents and people in other countries would be able to achieve higher income levels. d. the average income level would be lower in both the United States and other countries.
The costs of unemployment to an individual out of work are larger now than in the 1930s.
Answer the following statement true (T) or false (F)