If the price of a haircut (a normal good) increases, other things constant, the
a. demand for haircuts increases
b. demand for haircuts decreases
c. quantity demanded of haircuts decreases
d. quantity demanded of haircuts increases
e. demand for haircuts, or quantity demanded of haircuts decreases; they are the same thing
C
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A hike in the federal funds rate results in ________ in the real interest rate which leads to a ________ in investment
A) an increase; a decrease B) a decrease; a decrease C) a decrease; an increase D) a decrease; no change E) an increase; an increase
In the private placement market the term "due diligence" means
A) an investor finding an honest agent from whom to buy a bond. B) a borrower finding an honest agent to sell its bonds. C) conducting a credit analysis of the borrower. D) an agent tailoring terms of the placement to meet investor needs.
The natural rate hypothesis implies that the long-run Phillips curve will be:
a. downward-sloping. b. upward-sloping. c. vertical. d. horizontal.
Which of the following is most likely to be a major source of growth in per capita GDP?
a. A high investment / GDP ratio b. A high rate of inflation c. Rapid population growth d. Rapid growth in the money supply