Assume that there is an increase in perceived bankruptcy risk. As a result of this we would expect to see
a. income and interest rates to rise.
b. money demand and interest rates to fall.
c. money demand and interest rates to rise.
d. money supply to rise and interest rates to fall.Figure 7-1
C
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A university must decide if it should stop offering foreign language classes. This decision involves answering the economic question of "how to produce."
Indicate whether the statement is true or false
The Consumer Product Safety Commission (CPSC) was established in:
a. 1887. b. 1931. c. 1934. d. 1972.
Assume a fixed demand for money curve and the Fed increases the money supply. In response, people will:
a. sell bonds, thus driving up the interest rate. b. sell bonds, thus driving down the interest rate. c. buy bonds, thus driving up the interest rate. d. buy bonds, thus driving down the interest rate.
Studies have shown that tipping is much less common in countries where caring and personal relationships are highly valued, as opposed to the values of success and materialism
Indicate whether the statement is true or false