Answer the following statement(s) true (T) or false (F)
1. No one benefits when interest rates rise, because everyone's current consumption will be lowered.
2. Future productivity increases will be reflected in higher interest rates today.
3. Increases in interest rates lead to overall net gains.
4. A higher demand for capital implies a lower supply of current consumption.
5. A perpetuity is a bond with an established maturity date.
1. False
2. True
3. False
4. True
5. False
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If a life insurance company does NOT require a medical exam of its policyholders, it is most likely that the company
A) charges above-average premiums. B) charges below-average premiums. C) charges no premiums. D) has only very healthy policyholders.
Ownership in a government bureau is transferable
Indicate whether the statement is true or false
Exhibit 11-6Use the table below to answer the following question(s). Nominal GDP GDP Year(billions) deflator Year 1 600 100.0 Year 21,000 133.3 Refer to Exhibit 11-6. Measured in terms of Year 1 prices, real GDP in Year 2 was:
A. 600. B. 750. C. 900. D. 1,333.
Using the above figure, the short-run break-even price for the perfectly competitive firm will be
A. P1. B. P2. C. P3. D. P4.