The length of time until a bond matures is called the
a. perpetuity.
b. term.
c. maturity.
d. intermediation.
b
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When an economy is in a liquidity trap
A) monetary policy cannot be used to influence the exchange rate. B) monetary policy can be used to drive interest rates down, but not to drive them up. C) there is an excess demand for bonds. D) people and institutions avoid holding cash balances. E) it can escape only by introducing a hard, or illiquid, currency.
Answer the following statements true (T) or false (F)
1. The tax base is the percentage at which the tax is levied. 2. A sales tax is sometimes said to be regressive because the rate at which it is assessed declines as more and more taxable items are purchased. 3. The sales tax is proportional with respect to the tax base of the amount of purchases. 4. Automobile license fees and gasoline taxes are based on the benefit-received theory of taxation. 5. An excise tax can be shifted relatively easily.
For most consumers, blu-ray players and blu-ray discs are likely to be:
A) substitute goods. B) complementary goods. C) inferior goods. D) independent goods.
The relationship between the value and the price of a stock suggests that
A. the equilibrium price of a stock strikes a balance between those who think the stock is worth more and those who think the stock it's worth less at the current price. B. it is the stock market's best guess regarding the expected value of the company's future profits. C. stocks are overvalued. D. both A and B are true.