The higher the price that must be paid to purchase a government bond,
A. the lower will be the market rate of interest on that bond.
B. the higher will be the market rate of interest on that bond.
C. the greater will be the inflation rate.
D. the lower will be the inflation rate.
A. the lower will be the market rate of interest on that bond.
You might also like to view...
If the economy's resources are fully employed, pumping money into the economy will put ________ pressure on interest rates and will ________ output
A) upward; not change B) upward; decrease C) downward; decrease D) downward; not change
The government forcing a monopoly telecommunications company to allow other firms to use its cables is an attempt to
A) regulate prices. B) decrease the monopoly market power by eliminating a natural monopoly. C) decrease the monopoly market power by increasing competition. D) None of the above.
The coordination problem in the centrally planned economies refers to the idea that:
A. planners had to direct required inputs to each enterprise. B. the price level and the level of employment were inversely related. C. the immediate effect of more investment was less consumption. D. exports had to be equal to imports for a central plan to work.
According to classical economists, excessive unemployment does not persist in the economy because
A. the labor demand does not change in the economy. B. the labor supply does not change in the economy. C. interest rates always change to insure equilibrium in the money market. D. wages will always adjust to ensure equilibrium in the labor market.