All else equal, when the Federal Reserve Banks engage in a restrictive monetary policy, the prices of government bonds usually:
A. fall.
B. rise.
C. remain constant.
D. move in the same direction as the bonds' interest rate yield.
A. fall.
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In a graph of choice sets, a price change causes the slope of budget lines to change.
Answer the following statement true (T) or false (F)
One problem with conflicts of interest is that they can reduce the ________ in financial markets, thereby increasing ________
A) quantity of information; financial institutions' profits B) quantity of information; asymmetric information C) quality of information; asymmetric information D) quality of information; financial institutions' profits
The demand for labor curve bends backward whenever the income and substitution effects work in opposite directions
a. True b. False
As the price level rises, people feel wealthier and aggregate demand increases
Indicate whether the statement is true or false