Investors usually obtain bond ratings from:
A. the U.S. government from publicly available information.
B. private bond-rating agencies.
C. public Information made available by the bond issuers.
D. the annual tax returns of the issuer.
Answer: B
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Inflation that is caused by an increase in aggregate demand without any change in aggregate supply is called
A) demand-push inflation. B) cost-pull inflation. C) cost-push inflation. D) demand-pull inflation.
GDP accounts systematically ignore
A) non-market production. B) illegal and underground production. C) barter trades. D) the market value of services provided by illegal aliens. E) all of the above.
Which of the following would cause a decrease in the price of a good?
A) an increasing shift in the supply of a good and no shift in demand B) a decreasing shift in the supply of a good and no shift in demand C) an increasing shift in the demand for good and no shift in supply D) an increasing shift in the demand for good and a decreasing shift in supply
Based on what we know about asset price formation, what steps can a government use to restrict the formation of an asset price bubble?
A) Lower interest rates in order to discourage savings and investment B) Loosen lending requirements for banks, which encourages investors to buy bank stock rather than the "bubbling" asset C) Increase the money supply D) Raise interest rates in order to increase the costs of financing asset purchases