If the interest rate fell below the equilibrium rate, people would attempt to __________ bonds. Bond prices would __________ and the interest rate would __________
A) sell; rise; fall
B) buy; rise; fall
C) sell; fall; rise
D) buy; fall; rise
C
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The balance on the current account ____________
a. can never be negative b. can be positive or negative c. must always be one d. must always be zero e. is an itemized account of a nation's foreign economic transactions
What does it mean when an economist says that a currency has become stronger?
(A) Services, unlike goods, can be exported freely. (B) There are very few things that the currency cannot buy in a foreign market. (C) The currency can be exchanged for more of a foreign currency. (D) The currency will buy less of foreign goods.
Use the above table and assume a fixed cost of $200. At an output of 2, ATC is
A. $150.
B. $200.
C. $250.
D. $300.
In late-2008, President Bush proposed that a trade pact with Chile be tied to
A. an overhaul of the U.S. Postal Service. B. a bailout of the U.S. tobacco industry. C. a rescue package for the U.S. auto industry. D. negotiations with Colombian drug lords.