If the Fed decides to buy T-bills, it increases the demand for T-bills. How will this affect the price of T-bills and the interest rate?
a. T-bill prices fall and interest rates fall.
b. T-bill prices rise and interest rates rise.
c. T-bill prices rise and interest rates fall.
d. T-bill prices fall and interest rates rise.
c
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In an unregulated market for healthcare, there is
A) a deadweight loss from over-providing healthcare. B) a deadweight loss from under-providing healthcare. C) no deadweight loss. D) Any of the above could be correcting depending on how the marginal cost paid by producers compares to the marginal social cost.
Average propensity to consume
A) is the same as the break-even point. B) gives the amount a person changes planned consumption for a change in real disposable income. C) is the amount of consumption that is independent of the level of disposable income. D) is the proportion of total disposable income that is consumed.
Research by James Smith indicates that the grandsons of Mexican males who immigrated to the U.S. in the early 1900s
a. have higher levels of education and higher salaries than their grandfathers. b. have lower levels of education, but higher salaries than their grandfathers. c. have about the same level of education as than grandfathers and similar salaries. d. have lower levels of education and lower salaries than their grandfathers.
In general, people are willing to pay more than the expected value of insurance because:
A. they are risk-averse. B. most people would have trouble finding enough money to cover their losses. C. it allows them to afford major expenses from catastrophes without going bankrupt. D. All of these statements are true.