Assume the current interest rate on a one-year bond is 7%, and the interest rate investors expect on the one-year bond one year from now is 3%
According to the expectations hypothesis, the current interest rate (per year) on a two-year bond should be A) 3%.
B) 5%.
C) 7%.
D) 10%.
B
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Hyperinflations occur because governments want to spend more than they raise in taxes, and they pay for the extra purchases by printing money
Indicate whether the statement is true or false
Which of the following is an example of behavior that is not rational?
A) buying stocks after stock prices have declined B) buying stocks after stock prices have risen C) a significantly higher enrollment in 401K plans if people are automatically enrolled rather than having the option of signing up on their own D) enrollment in 401K plans during a bear market
Deadweight loss results from a misallocation of resources
a. True b. False Indicate whether the statement is true or false
The conservative theory of poverty blames _____ for welfare dependency.
A. the poor B. the government C. both the poor and the government D. neither the poor nor the government