If interest rates increase, what will happen to the demand for reserves?
A. It will shift outward.
B. It will shift inward.
C. Nothing, the economy will move to a new quantity demanded.
D. It depends on what happens to prices.
Answer: C
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Arnie's Airlines decides to offer different fares to different customers for the same tri
A) wants to convert consumer surplus to deadweight loss. B) wants to help some buyers with lower fares. C) has different costs for the same flight. D) wants to convert consumer surplus to economic profit. E) wants to convert producer surplus to consumer surplus.
A rational pricing strategy for a profit-maximizing monopolist is
a. price discrimination. b. price segregation. c. synergy pricing. d. average cost pricing.
Suppose the issuer of a bond fails to pay some of the interest or principal that was promised to the bondholders. This failure is referred to as a
a. breach. b. default. c. risk. d. term failure.
You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: receive $2,000 five years from now. The interest rate is 15 percent. Rank these three options from highest present value to lowest present value
a. Option 1; Option 2; Option 3 b. Option 3; Option 2; Option 1 c. Option 2; Option 3; Option 1 d. Option 3; Option 1; Option 2