The steeply upward sloping yield curve in the figure above indicates that ________ interest rates are expected to ________ in the future
A) short-term; rise
B) short-term; fall moderately
C) short-term; remain unchanged
D) long-term; fall moderately
A
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The difference between social cost and private cost is a measure of the
a. loss in profit to the seller as the result of a negative externality. b. cost of an externality. c. cost reduction when the negative externality is eliminated. d. cost incurred by the government when it intervenes in the market.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
Which of the following is charged with the job of buying and selling securities?
A. The New York Federal Reserve Bank B. The Federal Advisory Council C. The United States Treasury D. The Department of Internal Affairs
Suppose policy makers pass a budget that reduces the budget deficit. A deficit reduction package such as this has a greater chance of increasing current output when
A) the policy is front-loaded. B) financial markets believe that taxes will not increase in the future. C) financial markets believe the Fed will lower interest rates in the future. D) all of the above E) none of the above