All other factors equal, as nominal interest rates increase, checking account balances should:
A. remain constant.
B. be converted to cash.
C. decrease.
D. increase.
Answer: C
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An increase in a country's net commodity terms of trade will
A) not always guarantee positive changes in the country's economy. B) always increase the country's economic welfare. C) always increase the country's real income. D) never increase the country's quantity of exports. E) always increase the country's production of its import competing good.
The supply curve for a particular bond is horizontal
a. True b. False
Macroeconomics is converging with microeconomics because
A) macroeconomic relationships depend on microeconomic behavior. B) macroeconomics studies total output. C) government deficits and unemployment go together. D) inflation means a general increase in prices. E) microeconomic theories are easily testable whereas macroeconomic theories are difficult to test.
Each of these statements is true except
A. Female-headed black families with children under 18 have a poverty rate of almost 47%. B. Female-headed white families with children under 18 have a poverty rate of almost 35%. C. All families receiving public assistance are poor. D. All poor families receive public assistance.