As interest rates rise, banks seek to decrease their loans and, thereby, shrink the money supply
a. True
b. False
Indicate whether the statement is true or false
False
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Buyers and sellers in a flea market often determine the terms of exchange through a process of ________
A) collective bargaining B) bilateral bargaining C) sniping D) arbitration
Donna owns the only dog grooming salon on Lonely Island. If Donna can price discriminate between dog owners who are seniors and those who are not, her economic profit will be ________ than if she does not price discriminate and the number of dog
groomings will be ________ than if she does not price discriminate. A) greater; more B) greater; less C) less; more D) less; less
An example of the command-and-control approach to environmental policy is:
a. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole). b. requiring car producers to install new air conditioners that do not use freon. c. allowing coal producers to buy and sell permits to allow CFC emissions. d. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard.
An Australian investor buys a U.S. Treasury bond that has a price of $10,000 . pays 5 percent interest, and matures in a year. Between the purchase date and the maturity date, the exchange rate changes from $1 = AUD 5.0 to $1= AUD 5.2 . What will be the Australian investor's rate of return from the U.S. bond?
a. 4 percent b. 7 percent c. 9.2 percent d. 12 percent e. 25 percent