Which of the following statements is true about bonds?
A) Buyers of newly issued bonds are borrowers.
B) When the government and large corporations want to borrow money they buy bonds.
C) A bond owner must hold a bond until it matures.
D) The interest rate on a bond is inversely related to its price.
Ans: D) The interest rate on a bond is inversely related to its price.
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Answer the following statement(s) true (T) or false (F)
1. A price index is calculated by dividing the cost of a market basket in the base year by the cost of the market basked in the current year. 2. The Consumer Price Index (CPI) and GDP deflator often show opposite trends. 3. Unemployment is usually relatively high at the peak of a business cycle. 4. Most business cycles last a similar length of time. 5. Lagging economic indicators follow economic activity.
When output is 50, fixed costs are $1,000, and variable costs are $2,000, what is the average total cost?
A. $20 B. $60 C. $40 D. $80
If the U.S. dollar becomes weaker in international foreign exchange markets, imported goods become more expensive. One result of this is that
A) domestic employment rises. B) net exports increase. C) real Gross Domestic Product (GDP) increases. D) net exports decrease.
In goods market equilibrium in an open economy,
A) the desired amount of exports must equal the desired amount of imports. B) the desired amount of exports must equal the desired amount of imports less the amount lent abroad. C) the desired amount of national saving must equal the desired amount of domestic investment. D) the desired amount of national saving must equal the desired amount of domestic investment plus the amount lent abroad.