If tax rates in a country increase, ________
A) the unemployment rate in the country will fall
B) the gross domestic product of the country will decrease
C) the country's expenditure on consumption will increase
D) the aggregate price level of the country will rise
B
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If speculators believe a currency is soon going to be revalued, they will increase their demand for that currency
Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. Countries without well-developed financial systems are able to sustain high levels of economic growth. 2. In an open economy, the country interacts with other economies through both trading of goods and services and borrowing and lending. 3. If there is public dissaving, investment spending in the economy will decline, holding everything else constant.
What is a corporate bond and what does it specify?
What will be an ideal response?
The term structure of interest rates:
A. usually results in a flat yield curve. B. usually results in a downward sloping yield curve. C. represents the variation in yields for securities differing in maturities. D. always results in an upward sloping yield curve.