When the Fed sells bonds in the open market, we can expect
A) bond prices and interest rates to fall.
B) bond prices to rise and interest rates to fall.
C) bond prices to fall and interest rates to rise.
D) bond prices and interest rates to rise.
Ans: C) bond prices to fall and interest rates to rise.
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Construct a graph of the aggregate goods and services market for an economy experiencing the following
a. a recession b. full employment c. an economic boom
The price elasticity of demand equals 1:
A. whenever the slope of a straight-line demand curve equals zero. B. at the midpoint of a straight-line demand curve. C. whenever the slope of a straight-line demand curve is greater than 1 in absolute value. D. whenever the slope of a straight-line demand curve is less than 1 in absolute value.
Which of the following nations has experienced the highest average annual rate of growth of per capita real GDP since 1990?
A. United States B. Germany C. China D. India
Monopolists do not face constraints on the prices they charge.
Answer the following statement true (T) or false (F)