The Keynesian short-run aggregate supply curve is horizontal because
A. it represents the full employment level of real GDP.
B. it represents Say's law.
C. it reflects wage and price inflexibility.
D. it reflects the absence of money illusion.
Answer: C
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A change in quantity supplied is represented by a movement along the supply curve
Indicate whether the statement is true or false
A person holding dollar deposits during the devaluation of the dollar would
A) enjoy a monetary gain. B) see the foreign currency value of dollar assets increase by the amount of the exchange rate change. C) shift their wealth into domestic investments. D) suffer a monetary loss and see the foreign currency value of dollar assets decrease by the amount of the exchange rate change. E) see no change in their investments.
If a 10-year Treasury bond pays 1.5% and a 10-year corporate bond pays 4.4%, then the spread on this particular corporate bond is 5.9%
a. True b. False Indicate whether the statement is true or false
Legal risk is evident in a country that has _____.
A. falling living standards B. government debt C. a violation of property rights D. high inflation