The implication of the expectations theory that expected returns for a holding period must be the same for bonds of different maturities depends on the assumption that
A) yield curves usually slope upward.
B) yield curves usually slope downward.
C) instruments with different maturities are perfect substitutes.
D) savers are usually risk averse.
C
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Which of the following graphical representations can be used most appropriately to show the distribution of a household's income, in terms of percentages, among the various categories of expenses?
A) A bar chart B) A time-series graph C) A pie chart D) A histogram chart
When the monetary base increases by $4 billion, the quantity of money increases by $10 billion. Thus, the money multiplier equals
A) 0.4. B) 2.5. C) 40.0. D) none of the above.
A monopsony is a market situation in which there is only one seller
a. True b. False Indicate whether the statement is true or false
In the traditional Keynesian model, a cut in current taxes
A. has no effect on either disposable income or consumption. B. decreases disposable income but increases consumption. C. increases disposable income but does not affect consumption. D. increases both disposable income and consumption.