There is an inverse relationship between the price of an existing bond and its
A. Current yield.
B. Par value.
C. Liquidity yield.
D. Risk yield.
Answer: A
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The fallacy in the strict crowding-out argument comes from supposing that
a. the Federal Reserve always accommodates the U.S. Treasury in its financing of the deficit. b. corporations always outbid small businesses for government contracts. c. the economy's flow of saving is fixed. d. investors will spend more when G increases.
The combination of goods and services Mexico's citizens might feasibly consume are called Mexico's
A. total consumption. B. consumption possibilities. C. total production. D. production possibilities.
In broad terms the difference between microeconomics and macroeconomics is that
A) they use different sets of tools and ideas. B) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. C) macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. D) microeconomics studies the effects of government taxes on the national unemployment rate.
In a market where one unit of labor produces one unit of output, consumers prefer
A) a competitive labor market and a monopoly output market. B) a competitive output market and a monopoly labor market. C) a monopoly output market and a monopoly labor market. D) None of the above—they are indifferent between A and B.