Identify the correct statement
a. It is absolutely compulsory for the government to earn a profitable return on the money it earns by selling bonds.
b. When government borrowing rises, interest rates decline, thereby driving up private investment.
c. When interest rates rise, fewer number of corporations offer new bonds to raise investment funds.
d. An increase in interest rate reduces the cost of borrowing by the firms.
e. When interest rates fall, the firm's cost of raising funds through bonds increases.
c
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An economist is unlikely to be hired to do research about the following?
A. Oil prices. B. Election outcomes C. Interest rate D. Inflation rates E. Unemployment
The position of the long-run aggregate supply curve is determined by
A) the long-run aggregate demand curve. B) the production possibilities curve. C) the open economy effect. D) the interest rate effect.
According to the graph shown, if a firm is producing at Q1:
This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
A. profits are being maximized.
B. average total costs exceed the market price.
C. the firm should not increase production because it will earn loss.
D. marginal revenue is greater than average total cost.
If real GDP increased by 2% and nominal GDP increased by 2%, then output: a. increased and the price level increased
b. increased and the price level decreased. c. increased and the price level remained unchanged. d. remained unchanged and the price level increased.