An increased risk of a financial crisis in the euro area should cause the:
A. price of U.S. Treasury bonds to increase and the yield on other bonds to increase.
B. risk spread between U.S. Treasury bonds and other bonds to decrease.
C. demand for all government securities including U.S. Treasury securities to decrease.
D. price of U.S. Treasury bonds to increase and the yield on other bonds to decrease.
Answer: A
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Which of the following is NOT an example of the opportunity cost of investing in human capital?
A) lost wages while in school B) lost wages while in on-the-job training C) tuition payments D) apartment rent while working and going to school part-time
The Human Development Index does not contain a component on
a. income b. literacy c. food intake d. life expectancy e. it contains components of all
Generalizing using statistical discrimination is:
A. an irrational response and always leads to loss of surplus. B. a rational response to being on the wrong end of an information asymmetry. C. a rational response, although government always steps in to prevent it. D. All of these statements are true.
The long-run average change in real GDP is known as
a. the trend. b. the long-wave cycle. c. the expansion. d. fundamental growth.