An increase in expected inflation for any given nominal interest rate will cause the:
A. bond supply curve to shift to the left.
B. price of bonds to increase.
C. bond demand curve to shift to the right.
D. price of bonds to decrease.
Answer: D
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A demand curve can be thought of as
A. a graphical display of “market potential.” B. a graphical representation of the information in a demand schedule. C. showing how much people want to buy. D. a forecasting tool. E. All of these responses are correct.
How does the unemployment rate change in a recession and in an expansion?
What will be an ideal response?
The introduction of computer-based technologies in the telephone industry caused
a. an increase in the supply of telephone services. b. an increase in the demand for telephone services. c. an increase in the price of telephone services. d. a decrease in the number of calls handled daily by telephone companies.
Exhibit 11-4 Taxable Income Taxes $0 - $23,000 15% of taxable income $23,001 - $42,000 $3,450 + 20% of everything over $23,000 $42,001 - $100,000 $7,250 + 25% of everything over $42,000 Greater than $100,000 $21,750 + 30% of everything over $100,000 Refer to Exhibit 11-4. If a person's taxable income is $20,000, how much does he pay in taxes?
A) $600 B) $30,000 C) $18,000 D) $3,000