According to the liquidity premium theory of the term structure, a downward sloping yield curve indicates that short-term interest rates are expected to
A) rise in the future.
B) remain unchanged in the future.
C) decline moderately in the future.
D) decline sharply in the future.
D
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Which of the following will cause an inward shift of the production possibilities curve of an economy?
A) A decrease in the demand for goods and services B) Introduction of better technology C) A decline in the size of the labor force D) An increase in the opportunity cost of the goods being produced
Based on past experience, if a country is experiencing hyperinflation, then which of the following would be a reasonable guess?
a. The country has high money supply growth. b. Inflation is acting like a tax on everyone who holds money. c. The government is printing money to finance its expenditures. d. All of the above are correct.
Waybelow Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime control. This table shows the expected annual costs and benefits of these alternatives. Total Costs Per YearTotal Benefits Per Year (Reduction in the Costs of Crime)Level One - 1 Security Officer$20,000$80,000Level Two - 1 Security Officer with Guard Dog30,000120,000Level Three - 1 Security Officer with Guard Dog and Patrol Car40,000140,000Level Four - 2 Security Officers with Guard Dog50,000155,000Level Five - 2 Security Officers with Guard Dog and Patrol car60,000160,000Refer to the above information. Based on cost-benefit analysis, Waybelow should undertake:
A. Level Two. B. Level Three. C. Level Four. D. Level Five.
Suppose the consumption function is C = $100 + 0.85YD. If disposable income is $400, saving is
A. -$15.00. B. $15.00. C. $40.00. D. -$40.00.