As the price level rises
a. people will want to buy more bonds, so the interest rate rises.
b. people will want to buy fewer bonds, so the interest rate falls.
c. people will want to buy more bonds, so the interest rate falls.
d. people will want to buy fewer bonds, so the interest rate rises.
Answer: d. people will want to buy fewer bonds, so the interest rate rises.
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Attempts to fine-tune the economy through counter-cyclical monetary policy
A) demonstrated their effectiveness in the 1930s. B) demonstrated their effectiveness during World War II. C) demonstrated their effectiveness between 1945 and 1960. D) have not yet demonstrated their effectiveness.
Which of the following could be a barrier to entry?
a. diseconomies of scale b. a large number of buyers and sellers c. a standardized product d. economies of scale e. diseconomies of scope
During the last sixty years, the broad stock market (Standard and Poor's 500 Index) yielded an average annual nominal rate of return of approximately ____ and real rate of return of approximately ____
a. 5 percent; 2 percent b. 10 percent; 7 percent c. 17 percent; 9 percent d. 9 percent; 17 percent
An increase in price for an output good decreases the quantity demanded for input factors.
Answer the following statement true (T) or false (F)