In the presence of Regulation Q, when interest rates would rise, _____
a. the transaction demand for money in the economy would increase
b. people would invest in the bond markets
c. the economy would grow faster
d. people would withdraw money from banks seeking higher interest rates elsewhere
e. the U.S. dollar would depreciate
d
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Refer to Table 4.2. If you choose to invest in Japanese bonds, your investment return from Scenario D will be
A) 1%. B) 3%. C) 7%. D) 13%.
Which of the following is true?
a. The proportion of college degrees earned by women has been virtually unchanged during the last four decades. b. There was a substantial increase in the earnings of women relative to men in the 1960s and 1970s following the passage of legislation prohibiting employment discrimination against women. c. The number of women preparing for careers as professionals has declined during the last two decades. d. In 2010, 57 percent of those completing college degrees were women.
Which statement is true?
A. There was a great deal of stagflation in the 1970s. B. We had the worst recession since World War II in the late 2000s. C. We have had twelve recessions since January, 1945. D. All of the choices are true.
Firms with market power may try to limit entry of rival firms in the long run by setting the price of their product below the level that maximizes profit. This kind of pricing behavior
A. is OK in theory but would not be commonly practiced in the real world because no manager will ever price either above or below the profit-maximizing level. B. is a strategic pricing decision because the manager is making the pricing decision with the goal of altering the behavior of rival firms to protect its profit in the long run. C. is a business practice or tactic because pricing decisions are routine decisions made by managers every day. D. should always be implemented in order maximize the firm's market share in both the short run and long run periods.