Situations of negative interest rates on short-term bonds resulted from:
A) high income tax rates
B) government regulations requiring financial firms to purchase government bonds
C) very low risk premiums
D) investors were looking for safe havens when other investments were perceived to be very risky
D
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If an Atlanta bakery raises the price of their rye bread by 11 percent and the quantity demanded decreases by 11 percent, then the demand for the rye bread is ________ and the bakery's total revenue ________
A) unit elastic; does not change B) unit elastic; increases C) unit elastic; decreases D) elastic; does not change E) inelastic; does not change
When there are implicit costs of production,
a. accounting and economic profit are equal b. opportunity costs of production are zero c. explicit costs of production are small d. accounting profit will exceed economic profit e. economic profit will exceed accounting profit
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
Macroeconomics is best described as the study of:
A. very large issues. B. the choices made by individual households, firms, and governments. C. the nation's economy as a whole. D. the relationship between inflation and wage inequality.