Bond prices and interest rates
A. are interrelated.
B. have no relationship to one another.
C. rise or fall in tandem.
D. None of these choices.
Answer: A
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In a perfectly competitive market, the type of decision a firm has to make is different in the short run than in the long run. Which of the following is an example of a perfectly competitive firm's short-run decision?
A) the profit-maximizing level of output B) how much to spend on advertising and sales promotion C) what price to charge buyers for the product D) whether or not to enter or exit an industry E) whether or not to change its plant size
In general, people are willing to pay more than the expected value of insurance because:
A. they are risk-averse. B. most people would have trouble finding enough money to cover their losses. C. it allows them to afford major expenses from catastrophes without going bankrupt. D. All of these statements are true.
An exchange rate appreciation will shift the aggregate demand curve inward
a. True b. False Indicate whether the statement is true or false
In Year 1, the price level was 120 and the average nominal income was $30,000. In Year 2, the price level was 125 and the average nominal level of income was $32,000. What happened to real income from Year 1 to Year 2?
A. It fell by $400 B. It rose by $400 C. It rose by $600 D. It rose by $2,000