The difference between a standard and an inverted yield curve is that when the yield curve is inverted, the longer-term bond pays a lower interest rate than a short-term bond.
Answer the following statement true (T) or false (F)
True
When the yield curve is inverted, the long-term bonds pay a lower interest rate compared to the short-term bonds.
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Suppose that over the next few years the demand for dancing to country and western music decreases. Hence, at country and western dance clubs the equilibrium price of admission ________ and the equilibrium quantity of dancing ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; decreases
A monopolistically competitive firm will always choose to produce where
A) marginal revenue equals marginal cost. B) marginal cost meets the demand curve. C) average total cost meets the demand curve. D) average total cost is minimized.
An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total costs when it is maximizing its profit will be
A) $30. B) $40. C) $80. D) $140.
Discuss the advantages of the Herfindahl-Hirschman Index compared with the four-firm concentration ratio