Under the liquidity premium theory, the expectation that future short-term rates will be constant results in a yield curve that
A) is flat.
B) slopes upward.
C) slopes downward.
D) is flat, slopes upward, or slopes downward, depending on the size of the term premium at each maturity.
B
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If, at the current exchange rate between the dollar and the Norwegian kroner of 5.78 kroner per dollar, the dollar is "overvalued," how do you expect demand and supply in the foreign exchange markets to respond?
A) The demand for the dollar will fall, while the supply of the kroner will rise. B) The demand for the dollar will rise, while the supply of the kroner will fall. C) The supply of the dollar will rise, while the demand for the kroner will fall. D) The supply of the dollar will rise, while the demand for the kroner will rise.
Refer to the table. If equilibrium real GDP is $31 billion, the equilibrium price level will be:
Answer the question on the basis of the following table for a particular country in which C is
consumption expenditures, I g is gross investment expenditures, G is government expenditures,
X is exports, and M is imports. All figures are in billions of dollars. Each question is
independent of other question using the same table, unless otherwise stated.
A. 128.
B. 125.
C. 122.
D. 119.
Sandra's Sweaters' production function is shown in the above table. Sandra rents three knitting machines for $30 a day each and hires workers at a wage rate of $40 a day
If the rental rate of capital rises to $50 per machine a day, Sandra's ________ curve shifts upward. A) average variable cost B) total variable cost C) average fixed cost D) marginal cost
Which of the following are examples of non-rival and exclusive goods?
a. public swimming pool b. golf course c. subways d. all of the above goods are non-rival and exclusive