When bond prices rise,
a. stock prices must fall.
b. interest rates must fall.
c. interest rates must rise.
d. bankruptcies generally increase.
b
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When an industry supply curve increases enough to erase economic profits,
a. weaker firms exit the industry b. quantity demanded decreases, but only slightly c. all firms in the industry incur economic losses d. entry of new firms and expansion of existing firms stop e. marginal revenue increases
As a portion of total assets measured in billions of dollars, the least important asset on the Fed's balance sheet is:
A. loans. B. foreign exchange reserves. C. securities. D. gold.
High rates of saving and investing in the private sector promote economic growth by:
A. increasing human capital. B. improving technology. C. improving the social and legal environment. D. increasing physical capital.
If an economy maintains a small rate of growth for a long period of time, then the size of the economy:
A. can only increase by a small amount. B. will stay nearly constant. C. can increase by a large amount. D. can never double.