According to the Expectations Theory of the term structure, if interest rates are expected to be 2%, 2%, 4%, and 5% over the next four years, which yield is the closest to the yield on a three-year bond today?
A. 2.7%
B. 4%
C. 8%
D. 4.3%
Answer: A
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Give an example where individuals "vote with their feet" in choosing among bundles of public goods and tax rates
What will be an ideal response?
The 1973-1975 recession was caused by
A) the Fed's easy monetary policy. B) the Fed's tight monetary policy. C) business pessimism about investment caused by high tax rates on capital. D) the quadrupling of oil prices by OPEC.
If the demand for a good increases because consumer income increases, the good is a(n):
a. inferior good. b. normal good. c. necessity good. d. luxury good.
Suppose an economist uses an econometric model to estimate the demand for peanut butter in the United States. This modeling is an example of
a. economic policy making b. normative economics c. positive economics d. macroeconomic analysis e. descriptive economic analysis