Everything else held constant, a decline in interest rates will cause spending on housing to
A) fall.
B) remain unchanged.
C) either rise, fall, or remain the same.
D) rise.
D
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Changes in real planned investment spending have
A) an inverse relationship to changes in the interest rate. B) no identifiable relationship to changes in the interest rate. C) a direct relationship to changes in the level of household savings. D) a direct relationship to changes in interest rates.
The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from her 10th soda is
A) $0.00. B) $0.50. C) $1.00. D) $1.50. E) $2.50.
An unanticipated reduction in the level of prices in the goods and services market, which results in a temporary increase in real wage rates, will
a. increase the natural rate of unemployment. b. reduce the natural rate of unemployment. c. result in an actual rate of unemployment that is less than the natural rate of unemployment. d. result in an actual rate of unemployment that is greater than the natural rate of unemployment.
The face value of a bond is
A) the price an individual pays to purchase the bond. B) the amount that the issuer will have to pay upon maturity. C) the market value of the bond. D) the rate of return on the bond.