When the Federal Reserve buys U.S. government securities on the open market, it drives bond prices ____ and drives interest rates ____.
A. up; up
B. down; down
C. up; down
D. down; up
C. up; down
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GDP is defined as the market value of all ________ in a given time period
A) final goods produced in a country B) final goods and services produced by citizens of a particular country regardless of where in the world they are located C) final goods and services produced in a country by only the citizens of the country D) final goods and services produced in a country
Why is it misleading to argue that emissions permits are a “license to pollute”?
What will be an ideal response?
John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. The difference in expected earnings if John chooses to expand versus not expand is:
A. $120,000. B. $200,000. C. $320,000. D. $150,000.
A consumer's budget constraint is drawn on a graph with the number of sandwiches measured along the horizontal axis and the number of bowls of soup measured along the vertical axis. Hold the consumer's income and the price of a sandwich fixed, and increase the price of a bowl of soup. Describe the effect on the budget constraint