The bond supply curve slopes up because
A) interest rates rise as bond prices rise.
B) when bond prices are high, inflation is high.
C) the lender is willing and able to offer more bonds when the price of the bond is low.
D) the borrower is willing and able to offer more bonds when the price of the bond is high.
D
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The supply of loanable funds curve has a positive slope because the
A) lower the real interest rate, the higher the return to saving. B) lower the real interest rate, the lower the return to saving. C) average return in the stock market is directly related to the real interest rate. D) quantity of investment increases when the real interest rate increases. E) higher the real interest rate, the lower the return to saving.
If wages a firm pays it workers increase, then
A) the firm's long-run average cost curve shifts upward. B) the firm moves rightward along its long-run average cost curve to where it has diseconomies of scale. C) the firm's long-run average cost curve does not shift and there is no movement along the long-run average cost curve. D) the firm moves rightward along its long-run average cost curve but not necessarily to where it has diseconomies of scale.
Which of the following is not part of a negative income tax?
A. A positive tax rate B. A guaranteed income C. Cash transfers D. Transfers in kind
Final offer arbitration
A. is particularly useful at brining both sides closer to common ground. B. provides an incentive for the union, but not the firm's management, to make a more reasonable final offer. C. rarely makes the entire bargaining process more efficient. D. provides an incentive for the firm's management, but not the union, to make a more reasonable final offer. E. would never be chosen by a public sector union if the state did not require it.