When the Fed engages in a tight money policy, the price of government bonds tend to
A. fall.
B. rise.
C. remain constant.
D. move in the same direction as the bonds' market interest rate return.
A. fall.
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Euro-pessimists point out that:
A) rates of economic growth and inflation have converged to abysmally low levels in all Eurozone countries. B) there are still wide differences in rates of economic growth and inflation among Eurozone countries. C) the euro has appreciated considerably against the U.S. dollar. D) inflation rates have converged, but rates of economic growth have diverged among Eurozone countries.
At consumer equilibrium, the marginal utility of one dollar’s worth of any good is equal to ______.
a. one b. the total utility of all other goods combined. c. the marginal utility of one dollar’s worth of any other good d. zero
An example of a negative externality created in the market system would be
A) poverty. B) unemployment. C) a change in one consumer's tastes and preferences. D) water pollution.
Assume that as the firms in a perfectly competitive industry expand output, the prices of productive inputs increase
All else constant, this would cause the individual firms' marginal cost curves to ________ and the market supply curve to become ________. A) shift down; flatter B) shift down; steeper C) shift up; flatter D) shift up; steeper