when the inflation rate is high and volatile

What will be an ideal response?


investment is more risky and gains from trade are reduced

Economics

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A one-year bond currently pays 5% interest. It's expected that it will pay 4.5% next year and 4% the following year. The two-year term premium is 0.2% while the three-year term premium is 0.35%

What is the interest rate on a two-year bond according to the liquidity premium theory? A) 4.5% B) 4.75% C) 4.95% D) 4.975%

Economics

During most of the 1990s, average hours worked per week ____, then, after 2000 . started to ____

a. rose steadily; level off b. remained virtually constant; drop slowly. c. were on the upswing; fall slowly. d. continued to decline; level off

Economics

If redistribution is a public bad, rather than a public good, redistributing income to the poor makes others feel that society is:

A. unjust and therefore decreases their utility. B. more just and therefore decreases their utility. C. unjust and therefore increases their utility. D. more just and therefore increases their utility.

Economics

Greater emphasis on self-sufficiency and trading less with foreign countries would increase incomes and living standards in the United States

a. true b. false

Economics