Other things held constant, an increase in consumption spending implies
Answer: a decline in saving
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The expectations theory
A) has difficulty explaining why U.S. Treasury securities have lower yields than corporate bonds. B) has difficulty explaining why yields on bonds of different maturities move together. C) has difficulty explaining why yield curves usually slope upward. D) accounts well for the fact that yield curves usually slope upward.
Money is neutral in the model economy we discussed because
A) the money supply is exogenous. B) the money supply is intertemporal. C) prices are fully flexible. D) it is a barter economy.
If, during the negotiations between the union and the management a strike occurs, it would be because
a. The union is trying to convince the management that it will stick to its strategy b. The management doesn't believe the union's threat c. All of the above d. None of the above
The value of the housing services provided by the economy's owner-occupied houses is
a. included in GDP, and the estimated rental values of the houses are used to place a value on these housing services. b. included in GDP, and the actual mortgage payments made on the houses are used to estimate the value of these rental services. c. excluded from GDP since these services are not sold in any market. d. excluded from GDP since the value of these housing services cannot be estimated with any degree of precision.