An expansionary fiscal policy is likely to result in the Treasury
A) selling more bonds, the prices of bonds falling, and interest rates falling.
B) buying more bonds, the prices of bonds rising, and interest rates falling.
C) selling more bonds, the prices of bonds rising, and interest rates rising.
D) selling more bonds, the prices of bonds falling, and interest rates rising.
Ans: D) selling more bonds, the prices of bonds falling, and interest rates rising.
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Suppose a firm's technology is represented by the Cobb-Douglas production function F(L, K) = 5LK. The wage rate is $50 and the rental rate of capital is $10. What is the least-cost combination to produce 100 units of output?
What will be an ideal response?
The Carolina Christmas Tree Corporation grows and sells 500 Christmas trees. The average cost of production per tree is $50 . Each tree sells for a price of $65 . The Carolina Christmas Tree Corporation's total revenues are
a. $7,500. b. $25,000. c. $32,500. d. $67,500.
When supply for an item is perfectly inelastic, how does the supply change when there is a steep drop in price?
a. increases b. decreases c. does not change d. is eliminated
Price discrimination is often used by businesses. Explain the conditions under which price discrimination is practiced
What will be an ideal response?