When bond prices go down, interest rates go ___________.
Fill in the blank(s) with the appropriate word(s).
up
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As interest rates rise, the opportunity cost of holding money ________ and the demand for money ________
A) rises; rises B) rises; falls C) falls; rises D) falls; falls
Combined federal, state, and local government expenditures in the United States were approximately 9 percent of the gross domestic product (GDP) in 1930 . How large were government expenditures as a share of GDP in 2012?
a. approximately 15 percent b. approximately 25 percent c. approximately 30 percent d. approximately 38 percent
An increase in the money supply will lower the equilibrium rate of interest.
a. true b. false
The relationship between inflation and unemployment is given by ? = ?e - 2(u - 
).(a)Draw a diagram showing a long-run Phillips curve and two short-run Phillips curves that contain the following points: A: ? = .03, ?e = .03 B: ? = .06, ?e = .06 C: ? = .03, ?e = .06 D: ? = .06, ?e = .03Label points A, B, C, and D in your diagram.The unemployment rate at point A equals .05.(b)What are the values of the natural rate of unemployment and the unemployment rates at points B, C, and D?
What will be an ideal response?