Figure 5-9
In Figure 5-9, the consumer’s marginal rate of substitution at his optimum choice of X and Y is
A. ?1.
B. 16.
C. 8.
D. ?8.
Answer: A
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Everything else held constant, if the expected return on U.S. Treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds falls from 10 to 8 percent, then the expected return of corporate bonds ________ relative to U.S
Treasury bonds and the demand for corporate bonds ________. A) rises; rises B) rises; falls C) falls; rises D) falls; falls
The long-run average change in real GDP is known as
a. the trend. b. the long-wave cycle. c. the expansion. d. fundamental growth.
The concept of present value helps explain why the quantity of loanable funds demanded decreases when the interest rate increases
a. True b. False Indicate whether the statement is true or false
The GDP growth rate:
A. is measured as the percent change in real GDP from one time period to the next. B. is a measure to track changes in an economy over time. C. looks at changes in GDP across different time periods. D. All of these statements are true.