Suppose that general business conditions improve, and at the same time, wealth increases. Based on this information, we know that:
A. the real interest rate increases.
B. bond prices increase.
C. yield to maturity decreases.
D. the quantity of bonds increases.
Answer: D
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If everyone has identical preferences over public goods, Lindahl prices for providing the efficient level of the public good will be the same for everyone.
Answer the following statement true (T) or false (F)
If a country has a large deficit in its current account
A) it has a large surplus in its financial account. B) it exports more than it imports. C) it is a net creditor to the rest of the world. D) None of the above are necessarily true.
How does macroprudential regulation relate to conventional measures to prevent fraud and promote transparency?
What will be an ideal response?
Which of the following is true about the differences between M-form and U-form firms? a. As M-form firms are more diversified, it is more difficult for the management to acquire and compare information about products and locations than a U-form firm. b. A U-form firm can better incentivize managers than M-form firms. c. In an M-form firm the interests of executives in product or geographic
divisions can bebetter aligned with those of shareholders compared to a U-form firm. d. M-form firms usually operate in fewer markets than U-form firms.