An open market purchase of T-bonds by the Fed causes the money supply to
a. fall and bond prices to fall.
b. rise and bond prices to fall.
c. rise and bond prices to rise.
d. fall and bond prices to rise.
c
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You want to invest in a firm whose profits show large fluctuations throughout the business cycle. Which of the following would you invest in?
A) A corporation that depends heavily on business fixed investment B) A corporation that depends heavily on consumer services C) A corporation that depends heavily on consumer nondurables D) A corporation that depends heavily on government purchases
In the electric power industry, residential customers have relatively ____ demand for electricity compared with large industrial users. But contrary to price discrimination, large industrial users generally are charged ____ rates
a. similar, similar b. elastic, lower c. elastic, higher d. inelastic, lower e. inelastic, higher
Which of the following refers to the process by which unions negotiate their wages and benefits?
a. collective bargaining b. efficiency wage modelling c. minimum wage setting d. wage-rate determination
Which of the following assets is most liquid?
A. funds in a checking account B. a car C. a home D. a municipal bond