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

Economics

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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

Economics

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.

Economics

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.

Economics

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.

Economics