Suppose China decides to sell a vast majority of their large holdings of U.S. Treasury bonds. If you are thinking of refinancing your house, how would China's action affect your decision to refinance?
A) You would want to wait to refinance as interest rates should rise.
B) China's actions should not affect your decision to refinance in any way.
C) You would want to refinance as soon as possible as interest rates should rise.
D) You would want to wait to refinance as interest rates should fall.
C
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Which of the following will be included in the income-based method of national accounting?
A) A firm's expenditure on raw materials B) A student's expenditure on education C) A consumer's expenditure on a imported car D) A worker's retirement benefits
Refer to the scenario above. What is the change in total revenue due to the price reduction?
A) The total revenue increases by $25. B) The total revenue increases by $50. C) The total revenue decreases by $105. D) The total revenue decreases by $175.
To avoid a rule-of-reason violation, the manager of a designer handbag firm should not undertake which of these actions without first speaking to an attorney?
A) enter into an agreement with a distributor about the minimum price the distributor can resell the handbags B) enter into an agreement with another designer handbag firm to set the price of the handbags C) enter into an agreement with another designer handbag firm not to sell to a particular customer D) enter into an agreement with another designer handbag firm to only sell in certain areas of the world
A trade-off of using monetary policy to maintain a pegged exchange rate
a. increases the power of the central bank. b. always increases the interest rate. c. cannot be used to address inflation or unemployment. d. cannot be used to change tax policies.