If the Federal Reserve unexpectedly raised its interest rate target, which of the following would most likely occur?
a. The interest rate would increase and bond prices would rise.
b. The interest rate would decrease and bond prices would rise.
c. The interest rate would increase and bond prices would fall.
d. The interest rate would decrease and bond prices would fall.
e. The interest rate would increase but bond prices would not change.
C
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Economists have shown that when the ultimatum game experiment is carried out, both allocators and recipients act as if fairness is important
Indicate whether the statement is true or false
In economics, international trade is based on the existence of
A) absolute advantage between countries. B) relative advantage between countries. C) comparative advantage between countries. D) output advantage between countries.
One reason why purchasing power parity may not work perfectly has to do with barriers to trade such as tariffs and quotas on imports
a. True b. False
Cyclical unemployment occurs when a(n): a. automobile worker is laid off from his job because of a recession
b. ski instructor loses his job after the winter season. c. typist loses his job as his skills have become obsolete in the current labor market. d. government employee takes early voluntary retirement.