If the credit markets were segmented:
a. It would be relatively easy to arbitrage securities of different maturities, because discrepancies in real and nominal interest rates would be so obvious.
b. Persistent differences between real and nominal interest rates could continue for extended periods of time.
c. The yield curve would be upward-sloping.
d. The yield curve would be downward sloping.
e. Potential, arbitrageable differences between the yields on securities of different maturities could continue for extended periods of time.
.E
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For a single-price monopoly, marginal revenue is ________ when demand is elastic and is ________ when demand is inelastic
A) negative; negative B) negative; positive C) positive; negative D) positive; positive
Suppose that workers in the food service industry go on strike during an economic downturn because they are unwilling to accept a cut in their wages unless they know that workers in other industries are receiving similar wage cuts. This example is consistent with the
A. relative-wage explanation of unemployment. B. efficiency wage explanation of unemployment. C. social contract explanation of unemployment. D. explicit contract explanation of unemployment.
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A. is; is B. is not; is C. is; is not D. is not; is not
In 2011, the net financial account balance was approximately
A) $790 billion. B) -$790 billion. C) $394 billion. D) -$394 billion.