The downward sloping aggregate demand curve can be explained in part through the:
A. positive relationship between the price level and net exports.
B. negative relationship between the price level and investment spending.
C. positive relationship between the price level and consumption.
D. All of these are true.
Answer: B
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Which of the following is a deficit item on the balance of payments?
A) exports of merchandise B) foreign tourist dollars spent domestically C) sales of gold to foreigners D) purchases of foreign assets
Treasury bonds typically have lower coupon rates than corporate bonds because
A. There is a lower risk that the U.S. Treasury will default. B. The U.S. Treasury does not earn profits. C. Government regulations keep interest rates on Treasury bonds below market rates. D. The opportunity cost of purchasing Treasury bonds is lower than the opportunity cost of buying corporate bonds.
The introduction of new technologies to production is ________ source of productivity improvement.
A. the only B. the least important C. no longer a D. the most important
The U.S. Treasury offers several ways to purchase U.S. government bonds. There are the traditional coupon bonds and Treasury Inflation-Indexed Securities. How do these bonds differ from their traditional counterparts?
What will be an ideal response?