You turn to the Treasury bond market page of a newspaper and look under the column headed "Bid" and see that it says, "125:8" this indicates that
A. the price that the buyer is willing to pay for this bond is $125.08.
B. the price that the buyer is willing to pay for this bond is $1,252.50.
C. the price that the seller is willing to sell this bond for is $125.80.
D. the price that the seller is willing to sell this bond for is $125.08.
Answer: B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
The government forcing a monopoly telecommunications company to allow other firms to use its cables is an attempt to
A) regulate prices. B) decrease the monopoly market power by eliminating a natural monopoly. C) decrease the monopoly market power by increasing competition. D) None of the above.
A business cycle is the:
a. period of time in which expansion and contraction of economic activity are equal. b. period of time in which there are three phases: peak, depression, and recovery. c. recurring growth and decline in real GDP. d. period of time in which a business is established and ceases operations.
Voting as a mechanism for public choice is associated with a number of problems including
A. disengaged voters with very little incentive to inform themselves of the issues. B. majority rule voting can lead to contradictory and inconsistent results. C. logrolling. D. all of the above.