All else equal, when the Federal Reserve Banks engage in an expansionary monetary policy, the interest rates received on government bonds usually:
A. fall.
B. rise.
C. remain constant.
D. move in the same direction as the bonds' price.
A. fall.
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The fixed exchange rates of the Bretton Woods system were maintained
A) by central bank interventions in the foreign-exchange market. B) by the requirement that short-term interest rates be equalized in all participating countries. C) by the requirement that long-term interest rates be equalized in all participating countries. D) through the automatic workings of the foreign-exchange market.
Explain why a monopolist has no supply curve
What will be an ideal response?
Refer to the accompanying figure. Moving from point B to point A, the opportunity cost of 25 more salads is:
A. 5 pizzas. B. 20 pizzas. C. 10 pizzas. D. 15 pizzas.
Suppose a monopoly is producing output so that marginal revenue equals marginal cost. If the monopolist reduces output, it:
A. can charge a higher price. B. will increase profits. C. will decrease marginal revenue. D. can charge a higher price and it will increase profits.