If the Fed raises the interest rates on short-term U.S. government bonds, then the Security Market Line shifts:
A. Downward as the risk-free interest rate increases
B. Downward as the risk-free interest rate decreases
C. Upward as the risk-free interest rate increases
D. Upward as the risk-free interest rate decreases
C. Upward as the risk-free interest rate increases
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Consider an economy that is in equilibrium with real GDP = $5,000 . MPS = 1/4 and MPI = 1/5 . What will be the new equilibrium level of income if planned investment spending increases by $500?
a. $15,000 b. $7,000 c. $6,111 d. $5,500 e. $5,000
Which of the following statements is correct?
a. NASDAQ is an important stock exchange in the United States. b. The demand for a corporation's stock is largely based on people's perception of the corporation's profitability in the future. c. Compared to the Standard & Poor's 500 Index, the Dow Jones Industrial Average incorporates the stock prices of a much smaller number of corporations. d. All of the above are correct.
Which of the followings is not a bank's assets?
A) reserves B) loans C) government bonds D) checkable deposits
In efficient markets, profit opportunities are quickly eliminated as they develop.
Answer the following statement true (T) or false (F)