Term premium refers to
A) the average difference over a long period of the interest rate on long-term bonds and the interest rate on the short-term federal funds rate.
B) the average difference over a long period of the interest rate on short-term financial instruments and the interest rate on the discount rate.
C) the difference between the corporate bond rate and the risk-free rate of Treasury bonds.
D) the difference between prime rate and the discount rate.
C
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Use the following consumption schedule to answer the next question. 
As income falls from level 3 to level 2, the amount of
A. consumption decreases and the amount of saving increases. B. consumption decreases and the amount of saving decreases. C. consumption increases and the amount of dissaving increases. D. consumption decreases and the amount of dissaving decreases.
The price of domestic goods in terms of foreign goods is referred to as
A) the nominal exchange rate. B) the relative inflation rate. C) the real exchange rate. D) the current account balance.
The change in the total gain to a nation from international trade is the: a. producer surplus
b. consumer surplus. c. excess of producer surplus over consumer surplus. d. sum of consumer and producer surpluses.
Figure 3-6
In Figure 3-6, assume this economy is currently operating at point D. What is the opportunity cost of moving to B?
A. About 200 bushels of wheat B. 200 bushels of soybeans C. Infinite, B cannot be produced at any cost. D. 0