When expected inflation increases, for any given nominal interest rate the:
A. bond demand curve shifts right.
B. price of bonds increases.
C. yield on bonds will increase.
D. bond supply curve shifts right.
Answer: D
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If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________
A) might rise, fall, or stay the same; decreases B) might rise, fall, or stay the same; increases C) falls; increases D) rises; might increase, decrease, or stay the same
When buyers in a competitive market take the selling price as given, they are said to be
a. market entrants. b. monopolists. c. free riders. d. price takers.
When exports of American goods increase, this __________ the demand for U.S. dollars and at the same time __________ foreign currencies
A) increases; increases the supply of B) decreases; increases the supply of C) increases; decreases the supply of D) increases; increases the demand for E) none of the above
Which of the following investment strategies involves generating a higher expected rate of return through increasing risk?
A. Diversifying B. Leverage C. Hedging risk D. Value at risk