An increase in the money supply will cause planned investment to ________ and consumption to ________.
A) decrease; decrease
B) decrease; increase
C) increase; increase
D) increase; decrease
Answer: C) increase; increase
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Refer to the scenario above. Which of the following problems arises in this scenario?
A) Low transaction costs B) The free-rider problem C) Moral hazard D) A negative externality
The interest payment on a bond is called a face value payment
Indicate whether the statement is true or false
What department of the federal government issues public debt and in what form?
a. Department of Commerce issues the debt and the debt is in the form of Fed bonds, Fed bills, and Fed notes b. The Federal Reserve issues the debt and the debt is in the form of Treasury bonds, Treasury bills, and Treasury notes c. The Federal Reserve issues the debt and the debt is in the form of Fed bonds, Fed bills, and Fed notes d. Department of the Treasury issues the debt and the debt is in the form of Treasury bonds, Treasury bills, and Treasury notes e. Department of Commerce issues the debt and the debt is in the form of its own bonds, bills, and notes
Firms that practice tacit collusion may receive some of the benefits of a cartel without explicitly organizing a group of firms.
Answer the following statement true (T) or false (F)