The U-shaped yield curve in the figure above indicates that short-term interest rates are expected to

A) rise in the near-term and fall later on.
B) fall sharply in the near-term and rise later on.
C) fall moderately in the near-term and rise later on.
D) remain unchanged in the near-term and rise later on.


B

Economics

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A bottle of wine costs $8 and a quiche costs $5. At Robert’s present levels of consumption, he spends all his income and receives marginal utility of $10 from the last bottle of wine and marginal utility of $4 from the last quiche. To maximize his total utility, Robert should

A. buy less wine and more quiche. B. buy more wine and less quiche. C. spend all of his money on wine. D. change his spending pattern until he buys 8/5ths as much wine as quiche.

Economics

The behavior of the Solow residual suggests that when current total factor productivity increases

A) it becomes more difficult to predict future total factor productivity. B) future total factor productivity is also likely to increase. C) such increases are temporary, so we can draw no conclusions about the likely behavior of future total factor productivity. D) future total factor productivity is likely to decrease.

Economics

Which of the following addresses agency costs

a. spot checks of the quality of employee work b. hiring only from job fairs c. instituting longer work days d. reducing the number of holidays

Economics

The money ____ equals 1 divided by the reserve requirement. The larger the reserve requirement, the ____ the money multiplier

a. supply; larger b. multiplier; larger c. supply; smaller d. multiplier; smaller

Economics