Generally with bond ratings, the ________ the rating, the lower the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default
A) higher; higher B) higher; lower C) lower; lower D) lower; higher
B
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If tax revenues equal 25 percent of total output and government expenditures equal 20 percent of total output, then there is a:
A. government budget deficit. B. government budget surplus. C. trade deficit. D. trade surplus.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Structural unemployment refers to unemployment that results from: a. inefficiencies in the market for labor that prolong the job search. b. being in the wrong geographical location
c. the specialization and division of labor. d. seasonal decreases in demand for labor. e. a recession in the economy.
When the demand for CDs rises, buyers will purchase more CDs at
A. all prices. B. some prices. C. no prices.