Suppose a bond promises to make a single payment at maturity. These types of bond are called
A) junk bonds.
B) indexed bonds.
C) corporate bonds.
D) discount bonds.
E) constant maturity bonds.
D
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The modern view of the Phillips curve suggests that:
A. when inflation is reduced, unemployment will fall below the natural rate. B. the Phillips curve is an unstable relationship. C. systematic demand stimulus policies will be unable to affect prices in the long run. D. there will be a trade-off between inflation and unemployment in the long run.
The price elasticity of supply measures how:
A. easily labor and capital can be substituted for one another in the production process. B. responsive the quantity supplied of X is to changes in the price of X. C. responsive the quantity supplied of Y is to changes in the price of X. D. responsive quantity supplied is to a change in incomes.
If crop dusting on your farm causes your neighbors to have sore throats, then crop dusting is creating
A) only explicit costs. B) opportunity costs. C) external costs. D) internal costs.
In a large open economy like the United States, an increased government budget deficit which reduces national saving
A. reduces investment and reduces the current account balance. B. reduces investment and improves the current account balance. C. has no effect on investment, but reduces the current account balance. D. has no effect on either investment or the current account balance.