When the yield curve is downward-sloping,
A) short-term yields are higher than long-term yields.
B) long-term yields are higher than short-term yields.
C) the bond market is anticipating the U.S. Treasury may default on its obligations.
D) the inflation rate is expected to rise.
A
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Households receive transfers from ________, and firms receive transfers from ________
A) firms; households B) government; government and households C) government; no one D) firms and government; government E) government; government
A cooperative equilibrium is most likely to arise in a
A) single-play game with a large number of players. B) single-play game without communication. C) repeated game with a large number of players. D) repeated game with a small number of players.
Which type of offering typically has the lowest fees?
A) initial public offering of stocks B) secondary offering C) offering of investment-grade bonds D) offering of non-investment-grade bonds
Other things equal, if the central bank raises the target inflation rate, this would result in the
A) AD curve shifting temporarily to the right. B) AD curve shifting permanently to the right. C) AS curve shifting temporarily to the left. D) AS curve shifting permanently to the left.