If the interest rate on a 2-year security was higher than the average expected interest rate on consecutive 1-year securities, people would be indifferent as to which security they held.
Answer the following statement true (T) or false (F)
False
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U.S. antitrust laws view monopolies as undesirable because
A) monopolies restrain trade and promote inefficiencies. B) monopolies create inferior products. C) monopolies produce only capital goods. D) monopolies produce only cheap, low quality goods.
The following are features of the Asian model
a. high savings b. low shares of government c. large investments in human capital d. a, b and c are correct e. only a and c are correct
The unemployment rate:
A. rises during booms and falls during recessions. B. rises during recessions and falls during booms. C. rises during times of rapid economic growth and falls during times of slow economic growth. D. tends to remain the same in booms and recessions.
If the world price of a product rises relative to the domestic price in a trading nation, then for that product
A. exports will increase or imports will decrease. B. exports and imports will decrease. C. imports will increase or exports will decrease. D. exports and imports will increase.