How can a bond investor hedge against a possible bear market in bonds?
A) sell futures contracts on Treasury notes
B) buy futures contracts on Treasury notes
C) going long in the spot market
D) going short in the spot market
A
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If wages and prices become extremely flexible ________
A) there is no trade off between inflation and unemployment B) unemployment can hardly deviate from the natural rate C) it becomes very difficult to differentiate the short-run from the long-run Phillips curve D) all of the above E) none of the above
Why do most economists favor emissions taxes and transferable pollution rights over compliance standards as pollution deterrents?
An increase in the price of a nonlabor input such as oil will cause
A) a movement down the SRAS curve. B) a movement up the SRAS curve. C) a leftward shift in the SRAS curve. D) a rightward shift in the SRAS curve. E) no change regarding the SRAS curve.
Other things the same, if the U.S. real exchange rate depreciated, then U.S. net exports would
a. fall and the quantity of dollars demanded in the market for foreign-currency exchange would fall. b. fall and the quantity of dollars demanded in the market for foreign-currency exchange would rise. c. rise and the quantity of dollars demanded in the market for foreign-currency exchange would fall. d. rise and the quantity of dollars demanded in the market for foreign-currency exchange would rise.