An investor who felt that the U.S. and world economies were about to improve, would be likely to
A) avoid investing in U.S. treasury bonds because interest rates would soon fall causing bond prices to rise.
B) avoid investing in U.S. treasury bonds because interest rates would soon rise causing bond prices to fall.
C) invest in U.S. treasury bonds because interest rates would soon fall causing bond prices to rise.
D) invest in U.S. treasury bonds because interest rates would soon rise causing bond prices to fall.
Ans: B) avoid investing in U.S. treasury bonds because interest rates would soon rise causing bond prices to fall.
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Refer to Table 19-15. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2015 equals
A) 94.1. B) 105.1. C) 106.2. D) 108.5.
Between 1870 and 1910, corn and wheat
a. output showed little, if any, growth in land productivity. b. output increased dramatically, due to labor productivity increases. c. yields per acre hardly changed. d. output increased dramatically due to the effects of increased amounts of capital per worker. e. All of the above are correct.
A one-percent increase in the rate of inflation in an economy can increase the value of the GDP deflator of the economy by 10
a. True b. False Indicate whether the statement is true or false
If the price elasticity of demand for automobiles is 2:
A. a 10 percent increase in price would result in a 10 percent decrease in quantity demanded. B. a 10 percent increase in price would result in a 20 percent increase in quantity demanded. C. a 10 percent decrease in price would result in a 20 percent decrease in quantity demanded. D. a 10 percent decrease in price would result in a 20 percent increase in quantity demanded.