When the Russian government defaulted on its bonds in August 1998:
A. risk spreads did not change.
B. risk spreads decreased significantly.
C. yields on U.S. Treasury securities fell while yields on corporate bonds rose.
D. yields on U.S. Treasury securities rose while prices of corporate bonds rose.
Answer: C
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The break-even point refers to
A) the amount of autonomous consumption. B) a point at which planned real consumption is for greater than real disposable income. C) the point at which planned real consumption equals real disposable income. D) the maximum amount of dissaving a person can experience.
In negotiating NAFTA, what two side agreements were reached?
What will be an ideal response?
Which of the following statements is correct with respect to the debate between the Keynesians and new classical economists?
a. Each side criticized monetarism b. The key source of disagreement centered on how people form their expectations. c. Both models believed that recessions were characterized by falling aggregate demand. d. Both believed that unanticipated changes in monetary policy could influence output. e. all of the above.
In an AD/AS model:
A. real GDP is shown on the horizontal axis. B. the potential GDP always slopes downwards. C. the GDP deflator always slopes upwards. D. the CPI is shown on the vertical axis.