If the government increases the corporate income tax,
A) the user cost of capital declines and V* increases.
B) the user cost of capital declines and V* decreases.
C) the user cost of capital increases and V* decreases.
D) the user cost of capital increases and V* increases.
C
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If prices in the bond market become more volatile, everything else held constant, the demand curve for bonds shifts ________ and interest rates ________
A) left; rise B) left; fall C) right; rise D) right; fall
The policy directive from the FOMC is carried out by
A) the presidents of the district banks. B) the presidents of commercial banks that are members of the Federal Reserve System. C) the account manager at the Federal Reserve Bank of New York. D) private dealers in the bond market.
Response to the energy crisis of the early 1970s did not include
a. gasoline "rationing by waiting." b. gasoline "rationing by price." c. increased bureaucratic involvement. d. Americans insulating their homes.
The range to the left of the midpoint on a linear demand curve is
A. infinite. B. elastic. C. inelastic. D. one.