The relationship between the price and the interest rate for a zero coupon bond is best described as:
A. fluctuating.
B. volatile.
C. inverse.
D. non-existent.
Answer: C
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From 1970 to 2006, the largest percentage increase in average real income for households in the United States occurred in which quintile?
A) the bottom quintile B) the second quintile C) the middle quintile D) the top quintile
Which of the following economies is experiencing an economic boom?
a. The U.S. actual real GDP is the same as the nation’s potential real output. b. The actual real GDP in Mexico is lower than the potential real GDP. c. The French actual real GDP is less than the potential real output. d. The actual real GDP in Canada is greater than the potential real GDP.
Bank reserves will increase over time when:
A. the Fed sells government securities on the open market. B. the Treasury sells government securities on the open market. C. depositors take funds out of their checkable deposit accounts. D. the Fed buys government securities on the open market.
Along an indifference curve, as the consumer reduces the quantity of Good A in favor of more Good B the marginal rate of substitution of Good A for Good B will
A. fall. B. fall and eventually turn negative. C. stay the same. D. rise.