Following the downgrade of U.S. debt by Standard & Poor's in August, 2011:
A) other rating agencies also downgraded U.S. debt
B) interest rates spiked as investor's perception of risk increased
C) investors didn't seem to be any more concerned about default risk than before the downgrade
D) the U.S. implemented a plan to significantly reduce its budget deficit later that year
C
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Refute the claim by mercantilists who claimed that without severe restrictions on international trade and payments, a country might find itself impoverished and without an adequate supply of circulating monetary gold as a result of balance of
payments deficits.
At levels of output close to full employment, the aggregate supply curve is probably
a. very flat. b. very steep. c. sloped downward. d. perfectly elastic.
Full-time homemakers and retirees are classified in the BLS data as
A. part of the labor force. B. not in the labor force. C. employed. D. unemployed.
As chief financial officer you sell newly issued bonds on behalf of your firm. Your firm is
a. borrowing directly. b. borrowing indirectly. c. lending directly. d. lending indirectly.