An equal decrease in all bond interest rates
A) increases the price of a five-year bond more than the price of a ten-year bond.
B) increases the price of a ten-year bond more than the price of a five-year bond.
C) decreases the price of a five-year bond more than the price of a ten-year bond.
D) decreases the price of a ten-year bond more than the price of a five-year bond.
B
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General equilibrium analysis is the study of
A) how an equilibrium is determined in all markets simultaneously. B) how an equilibrium is determined in all closely related markets. C) the effects of a change in a market, and all spillover effects in all related markets. D) Any of the above.
While it is possible to erect barriers to foreign competition and save domestic jobs, restricting international trade may impose large costs on an economy
a. True b. False Indicate whether the statement is true or false
Under the modern system of fractional reserve banking, banks
A. keep cash reserves equal to only a fraction of their deposit liabilities. B. loan out their excess reserves at interest, which is the key to their profitability. C. are always potentially vulnerable to runs. D. All of these responses are correct.
An increase in the price of steak will probably lead to:
A. an increase in demand for steak. B. no change in the demand for steak or chicken. C. an increase in demand for chicken. D. an increase in the supply for chicken.