Some people see the government as being more heavily involved in taking sides than in serving the common interest
Indicate whether the statement is true or false
True
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Recall the Application. The rise in commodity prices corresponded with ________ in interest rates, and this change in interest rates would result in bond prices ________
A) a decrease; falling B) an increase; falling C) an increase; rising D) a decrease; rising
An approach to analyzing consumer behavior in which consumer reaction to different prices is analyzed in a laboratory situation or a test market is called:
A) price experiments. B) non-price experiments. C) focus groups. D) none of the above.
If 1-year interest rates for the next five years are expected to be 4, 2, 5, 4, and 5 percent, and the 5-year term premium is 1 percent, than the 5-year bond rate will be
A) 2 percent. B) 3 percent. C) 4 percent. D) 5 percent.
Which of the following would cause the real interest rate to be negative?
a. When the nominal interest rate is greater than the inflation rate b. When the nominal interest rate is greater than the rate of deflation c. When the nominal interest rate is smaller than the rate of deflation d. When the nominal interest rate is smaller than the inflation rate e. When the nominal interest rate is equal to the inflation rate