When the Treasury bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the ________ and the demand curve for Treasury bonds shifts to the ________
A) right; right
B) right; left
C) left; right
D) left; left
B
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Deflation refers to
A) a falling price level. B) a decrease in the rate of inflation. C) Both A and B are correct. D) None of the above is correct.
Refer to Table 13-1. What portion of the marginal revenue of the 5th unit is due to the output effect and what portion is due to the price effect?
A) output effect = $1.50; price effect = $2.00 B) output effect = $5.50; price effect = -$2.00 C) output effect = $3.00; price effect = $0.50 D) output effect = $4.00; price effect = -$0.50
The difference between a change in quantity supplied and a change in supply is that a change in:
a. quantity supplied is caused by a change in a good's own, current price, while a change in supply is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes. b. supply is caused by a change in a good's own, current price, while a change in the quantity supplied is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes. c. quantity supplied is a change in the amount people want to sell, while a change in supply is a change in the amount they actually sell. d. supply and a change in the quantity supplied are the same thing.
Figure 9-4
?
In Figure 9-4, which expenditure level will cause an inflationary gap?
A. 1 B. 2 C. 3 D. There will be no inflationary gap.