Most home mortgages are good examples of:
A. consols.
B. coupon bonds.
C. zero-coupon bonds.
D. fixed-payment loans.
Answer: D
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When you buy at a low price in one market then sell at a higher price in another market you are engaging in
A) arbitrage. B) price discrimination. C) odd pricing. D) an antitrust prohibited practice.
The classical school of thought believed that ______.
a. Say’s law was incorrect b. Keynes’s macroeconomic model was correct c. an economy can experience prolonged unemployment d. wages and prices adjust quickly to changes in supply and demand
Answer the following statements true (T) or false (F)
1. In the market for sushi, an increase in supply and a greater decrease in demand will cause both the equilibrium price and quantity to decrease. 2. In the market for sushi, an increase in the price of fish along with an increase in the popularity of sushi among consumers will cause the equilibrium quantity to increase, but the effect on the equilibrium price is indeterminate. 3. In the market for gasoline, if the change in demand due to the start of the summer driving season is greater than the change in supply due to disruptions in the refinery operations in the Gulf, then the equilibrium quantity will increase. 4. In the market for crude oil, if the change in demand due to falling price of natural gas (a substitute for oil) is greater than the change in supply due to disruptions in oil-well operations in the Middle East, then the equilibrium price of oil will decrease. 5. In the foreign exchange market, if Canadian companies import more products from the U.S., then the demand for Canadian dollars will increase.
Which of the following is a TRUE statement?
A. The C + I + G + X curve has no relationship to the aggregate demand curve other than some of the variables that affect one curve also affect the other. B. The C + I + G + X curve is used to derive the aggregate demand curve, but the aggregate demand curve is drawn for one price level. C. The C + I + G + X curve is used to derive the aggregate demand curve, but the C + I + G + X curve is drawn for one price level while price levels vary along the aggregate demand curve. D. Both the C + I + G + X curve and the aggregate demand curve are drawn for one price level.