A model is used to explain economic behavior. Therefore
A) the assumptions must be complex while the model itself is simple.
B) the model must be complex.
C) the model must be simple.
D) the model can be either simple or complex so long as it explains economic behavior.
D
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The balance of trade includes trade in
A) goods only. B) both goods and services. C) services only. D) neither goods nor services.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
What are the conditions for price discrimination?
What will be an ideal response?
Which of the following best expresses the equation for holding period return?
A. Current yield + capital gain B. Coupon rate + capital gain C. Current yield + coupon rate D. Yield to maturity - current yield