Which of the following best explains why the long-term interest rate will generally change by less than 1% when the short-term interest rate changes by 1%?
A) The mathematical calculations are more difficult for analysts in the case of long-term bonds.
B) Long-term rates are always lower than short-term rates, so there is less room for them to change.
C) Financial market participants will not expect this increase in the short-term interest rate to persist fully in the future.
D) Financial markets are often affected by bubbles and fads.
E) none of the above
C
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Policies to create jobs in the nation are the concern of:
a. macroeconomics. b. microeconomics. c. both microeconomics and macroeconomics. d. neither microeconomics nor macroeconomics.
One of the distinguishing differences between periods of low inflation and periods of high inflation is that
a. low inflation periods are short-lived. b. high inflation periods are short-lived. c. high inflation periods are long-lived. d. low inflation leads to high inflation.
What is the four-firm market share (C4) in this market?
a. 0.5 b. 0.6 c. 0.7 d. 0.8
Which of the following describes a discretionary fiscal policy action/program?
A) the progressive income tax system B) The government increases funding for the Dislocated Worker Program, a federal initiative that provides retraining and career counseling. C) the unemployment compensation program D) the system of welfare programs