Economists predict the business cycle well enough that stabilization policy is likely to work despite lags in the effects of policy
a. True
b. False
Indicate whether the statement is true or false
False
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All else equal, the ________ the coupon rate on a bond, the ________ the bond's duration
A) higher; longer B) higher; shorter C) lower; shorter D) greater; longer
If free international trade opens up and a country has a comparative disadvantage in sugar production, we should expect
a. greater sugar consumption in that country b. higher sugar prices in that country c. greater sugar production in that country d. lower sugar prices in sugar-exporting countries e. greater sugar consumption in sugar-exporting countries
According to the modern expectational Phillips curve, unemployment will equal the natural rate of unemployment when
a. any inflation is present. b. inflation turns out to be lower than what people expected. c. inflation turns out to be higher than what people expected. d. inflation turns out to be equal to what people expected.
Which of the following is incorrect?
A. A firm can benefit from strategies that raise the marginal costs of its rivals. B. Predatory pricing is easy to prove in court. C. Learning curve effects may enable an incumbent to produce at a lower cost than a potential entrant. D. A firm can benefit from strategies that raise the fixed costs of all the firms in the industry.