In the above graph, tax revenues vary:
A. inversely with the level of GDP.
B. directly with the level of government spending.
C. directly with the level of GDP.
D. inversely with the level of government spending.
Answer: C
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Poland is classified as
A) an advanced economy. B) a developing economy. C) a transition economy. D) an emerging market economy. E) private economy.
If consumers believe the price of LCD televisions will decrease in the future, this will cause the demand for LCD televisions to increase now
Indicate whether the statement is true or false
If the current price of a bond is equal to its face value,
A) there is no capital gain or loss from holding the bond until maturity. B) the yield to maturity must be greater than the current yield. C) the current yield must be greater than the coupon rate. D) the coupon rate must be greater than the yield to maturity.
If a percentage decrease in money supply is followed by a proportional percentage decrease in prices and output, this means that:
a. the velocity of money is constant. b. the economy is in a recession. c. the velocity of money has fallen. d. real GDP is constant. e. the economy is not at maximum capacity