Which of the following statements is true?

A) when bond prices rise, real GDP and the price level rise.
B) when bond prices fall, real GDP rises and the price level falls.
C) when bond prices rise, the interest rate rises, and aggregate demand and the price level fall.
D) when bond prices fall, the interest rate and aggregate demand fall.


Ans: A) when bond prices rise, real GDP and the price level rise.

Economics

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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 

A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C

Economics

Based on the model, the MPC function is:

Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q; MSB = 30 – 0.3Q; MEB = 0. a. MPC = 20 – 0.8Q c. MPC = 10 + 0.8Q b. MPC = 30 – 0.6Q d. MPC = 10 + 0.2Q

Economics

Unconventional monetary policies include massive lending to banks and open-market purchases of assets other than Treasury bills.

Answer the following statement true (T) or false (F)

Economics

Why is the price of a scarce exhaustible resource in a competitive market above the marginal cost of providing a unit of the resource?

What will be an ideal response?

Economics