Regulation began in the United States in the 1950s.
Answer the following statement true (T) or false (F)
False
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If you initially pay $1,000 for a bond with an annual interest rate of 5 percent, but then the market interest rate falls to 4 percent
A) the market price of the bond is still $1,000. B) the bond's annual interest payment remains equal to $50. C) the market price of the bond has increased. D) the market price of the bond has decreased.
The opportunity cost of producing a good or service is the good or service that is foregone by choosing to produce another good with the same resources in a given period of time
a. True b. False Indicate whether the statement is true or false
Fiona can iron 5 shirts or cook 2 meals in an hour. Alicia can iron 6 shirts or cook 1 meal in an hour. Which of the following statements is true?
a. Fiona's marginal cost of ironing a shirt is greater than Alicia's. b. Alicia's marginal cost of ironing a shirt is greater than Fiona's. c. Alicia's marginal cost of cooking a meal is twice that of Fiona's. d. Fiona's marginal cost of cooking a meal is twice that of Alicia's.
In the late 1990s, debt-financed government spending decreased in Mexico. Following this decrease, consumption spending increased. Ricardian equivalence would explain this increase in consumption as the result of:
a. people's expectation of higher future taxes required to pay off government debt. b. people's expectation of lower future taxes that induce them to save less. c. automatic stabilization of the economy. d. the crowding out effect. e. an increase in current household disposable income.