If expectations are formed rationally and wages are inflexible in the short run, the short-run aggregate supply curve is
A) upward sloping.
B) horizontal.
C) vertical.
D) relatively flat.
C
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An investment tax credit, which would lower taxes for firms that invested in new capital equipment, would shift the long-run aggregate supply curve to the right over time
a. True b. False Indicate whether the statement is true or false
Money markets are where trades occur for:
A. short-term bonds issued by both governments and private companies. B. bonds of all maturities. C. stocks. D. derivatives.
Which of the following will occur if the Fed buys $10 million of securities from the University National Bank?
A) The Fed will credit the University National Bank's deposit account with the Fed by $10 million. B) The Fed will debit the University National Bank's deposit account with the Fed by $10 million. C) The University National Bank has $10 million less in excess reserves. D) The University National Bank has $10 million more in securities.
A coupon bond is a bond that:
A. pays the owner the sum of the coupons at the bond's maturity. B. always sells at a price that is less than the face value. C. provides the owner with regular payments. D. pays a variable coupon rate depending on the bond's price.