The interest paid on corporate bonds is not subject to federal taxes.
Answer the following statement true (T) or false (F)
False
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The empirical data indicate that in the short run exchange rates are much more variable than inflation differentials
Indicate whether the statement is true or false
Externalities can be internalized through voluntary agreements as long as
A. transaction costs are low relative to expected benefits. B. transaction costs are high relative to expected benefits. C. the agreement is a short-run agreement. D. the agreement is a long-run agreement.
If the Fed wants to reduce banks' reserves, it can
a. buy securities in the open market. b. lower the reserve ratio. c. lower the federal funds rate. d. raise the discount rate.
Using the midpoint method, the price elasticity of demand for a good is computed to be approximately 0.75 . Which of the following events is consistent with a 10 percent decrease in the quantity of the good demanded?
a. a 7.5 increase in the price of the good b. a 13.33 percent increase in the price of the good c. an increase in the price of the good from $7.50 to $10 d. an increase in the price of the good from $10 to $17.50