A policy to do nothing and allow the economy to self-correct or adjust without interference from the federal government is also called a(n) _______________ policy:
a. nonintervention
b. active
c. stabilization
d. fixed rule
a
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Jessica paid $6,200 for a bond with a face value of $6,000. She will be paid $350 annually as long as she holds on to the bond, until the bond's maturity date. The yield on the bond is
A. 5.6 percent. B. 5.8 percent. C. 15.6 percent. D. 2.0 percent.
During the 1970s, the price/earnings ratio of stocks in the S&P 500 was relatively low. This low P/E ratio was
a. surprising because the inflation rate was high during the 1970s. b. not surprising because interest rates were low during the inflationary 1970s. c. not surprising because interest rates were high during the inflationary 1970s. d. surprising because the inflation rate was low during the 1970s.
The purchasing power parity theory predicts that the exchange rate between two currencies will adjust in the long run to reflect price-level differences between the two currency regions. A given basket of internationally traded goods should therefore sell for similar amounts around the world (net of transportation costs)
Indicate whether the statement is true or false
Karl has a home business that consists of only himself and his computer. If he were to analyze his operations in the form of a long run production function his isoquants would
A. be straight lines with a negative slope. B. be concave from above. C. be L shaped. D. be straight lines with a positive slope.