When the yield curve is flat or downward-sloping, it suggest that the economy is more likely to enter
A) a recession.
B) an expansion.
C) a boom time.
D) a period of increasing output.
A
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Which of these is a disadvantage of issuing stock relative to bonds?
At full employment, there is no
A) structural unemployment. B) frictional unemployment. C) unemployment. D) structural and seasonal unemployment. E) cyclical unemployment.
This month Jones bought $10 of fresh hops for making home-brewed lager. In principle, what happens to GDP?
A) Nothing, because it involves the production of homemade beer. B) Nothing, because the hops are an intermediate good. C) GDP increases by $10. D) GDP increases by $10 as long as Jones is satisfied with the final product.
Total expenditures on a company's product will be largest when it is priced such that the elasticity of demand:
A. equals -1. B. is greater than -1. C. is less than -1. D. equals 0.