If you buy for $100 a bond that pays 4.57 percent in annual interest and the current interest yield on the bond rises to 5.13 percent, then the price of the bond has fallen
a. True
b. False
Indicate whether the statement is true or false
True
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Moving along the production possibilities frontier itself illustrates
A) the existence of tradeoffs. B) the existence of unemployment of some factors of production. C) the benefits of free lunches. D) how free lunches can be exploited through trade. E) how tradeoffs need not occur if the economy is efficient.
The impact of recession
a) is, in the aggregate, a more significant factor in social welfare than long run growth b) is more severe for professionals than for semi-skilled manual laborers c) is more severe for skilled workers than for unskilled workers d) causes larger declines in consumption among those aged 26 to 45 than among teenagers e) is most severe for the poorest members of society
Incentive-based regulatory approaches:
A. are viewed favorably by most economists as a way to control pollution. B. provide less flexibility than the command-and-control approach. C. tend to hurt wealthier people more than poor people. D. require that the government specify certain types of pollution control technology that firms must adopt.