If people expect the price of a stock to rise in future, the demand curve for the stock:
a. becomes positively sloped.
b. shifts to the right.
c. becomes horizontal.
d. becomes vertical.
e. shifts to the left.
b
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Bond prices and interest rates
A. are interrelated. B. have no relationship to one another. C. rise or fall in tandem. D. None of these choices.
Because money growth is a major component determining the inflation rate, in order to forecast inflation we should forecast actions by the
A) Congress. B) President. C) Fed. D) Office of the Treasury. E) U.S. Mint.
At full-employment GDP,
A) the long-run aggregate demand curve is horizontal. B) the long-run aggregate demand curve is vertical. C) the long-run aggregate supply curve is horizontal. D) the long-run aggregate supply curve is vertical.
Refer to the above figure. Suppose demand is D2 and then increases to D3. Economic rent after the change is
A) zero. B) area CIHF. C) area CIGO. D) area BJC.