Holding everything else constant, if interest rates are expected to increase, the demand for bonds ________ and the demand curve shifts ________
A) increases; right
B) decreases; right
C) increases; left
D) decreases; left
D
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The option to buy a company's stock at some future time at current prices is often given to CEOs
a. as an incentive to take actions that will raise the share price. b. because CEOs are often friends of those who hire them. c. as a means of discouraging the CEO from taking any risky actions. d. because this has become the custom of the business culture.
Suppose China Airlines wants to purchase a French Airbus. The price of the Airbus is 95 million Euro. If the exchange rate is 1 euro per 9 yuan, the price of this airplane to China Airlines is
A) 855 million yuan. B) 85.5 million yuan. C) 11.11 million yuan. D) 10.6 million yuan.
In the long run, a decrease in money supply, with the velocity of money stable or not decreasing, results in inflation
Indicate whether the statement is true or false
In a booming economy, fiscal policy automatically becomes:
A. contractionary as tax rates rise and welfare payments fall. B. expansionary as tax rates rise and welfare payments fall. C. contractionary as tax rates fall and welfare payments rise. D. expansionary as tax rates fall and welfare payments rise.