The market prices of existing bonds are
A) inversely related to the interest rate. B) stated in terms of the interest rate.
C) not related to the interest rate. D) directly related to the interest rate.
A
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Assuming there are no capital gains, a nation's wealth at the start of a year is equal to the wealth at the start of the previous year plus
A) income. B) nothing because wealth does not change from one year to the next. C) income minus saving during the year. D) saving during the year. E) saving minus depreciation during the year.
Examples of comparative advantage often begin with two countries that each produce the same two goods
Each country is then shown to have a comparative advantage in producing the good it can produce at a lower opportunity cost, and specializes in the production of the good for which it has a comparative advantage. How do these examples prove that both nations are made better off as a result of trade than they would be without trade?
If two competing models are offered to explain a certain economic phenomenon, the better model is the one
A) that is the newest since newer models are better than old models. B) with the fewest unrealistic assumptions. C) that more often predicts with most accuracy. D) that is not subject to empirical verification.
If the official gold value of the Australian dollar changes from 470 Australian dollars per ounce to 493 Australian dollars per ounce, we can say that the Australian dollar has appreciated in value
a. True b. False Indicate whether the statement is true or false