Prices and returns for ________ bonds are more volatile than those for ________ bonds, everything else held constant
A) long-term; long-term
B) long-term; short-term
C) short-term; long-term
D) short-term; short-term
B
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The quantity theory of money assumes that
a. the national economy tends to operate at less than full. b. the velocity of money is unstable. c. the national economy tends to operate at full employment. d. the velocity of money varies with changes in interest rates.
Is the monopolist supply decision more complicated than that of competitive supply?
A. Yes, because the monopolist can choose its price, and the perfect competitor cannot. B. No, because they are both price takers. C. No, because the market determines the quantity for the monopolist. D. No, because the market determines the price for both firms.
The ultimate result of the multiplier-accelerator interaction is a(n)
a. lengthy period of economic growth and prosperity similar to the one experienced in the 1990s b. prosperity at an annual growth rate of about three percent, which is the rate of growth of full employment GDP c. noninterventionist government countercyclical fiscal policy d. need for the economy's rate of growth to grow or at least remain constant otherwise a positive but slower growth rate can spark an economy's downturn e. need for the economy to maintain its current level of consumption to justify the increased level of capital stock
The ability to shift a tax burden depends on the relative elasticities of demand and supply for the taxed commodity
a. True b. False Indicate whether the statement is true or false