The price of a bond with a maturity date one time period into the future is equal to its face value
a. multiplier by 1 - r.
b. multiplied by 1 + r.
c. divided by 1 + r.
d. divided by 1 - r.
c. divided by 1 + r.
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The buying and selling of government securities by the Fed is known as:
a. open market operations. b. federal bond operations. c. treasury bond operations. d. open bonds operations. e. discount rate operations.
There are many reallife examples of factorintensity differences across the same industries in different nations. How does the HeckscherOhlin model handle this?
A. The HO model makes no assumptions about different factor intensities. B. The HO model assumes that all firms require equal amounts of capital and labor just to be on the safe side. C. The HO model ignores the possibility of different factor intensities and instead assumes that each industry has the same factor intensity in every nation. This assumption enables the model to predict trade based on other factors. D. Actually, the factorintensity reversal issue does not change the predictive value of the model.
The decrease in the value of the dollar relative to the Mexican peso
A. increased the dollar price paid and decreased the peso price received for Mexican goods imported into the U.S. B. decreased both the dollar price paid and the peso price received for Mexican goods imported into the U.S. C. increased both the dollar price paid and the peso price received for Mexican goods imported into the U.S. D. decreased the dollar price paid and increased the peso price received for Mexican goods imported into the U.S.
If we let Md reflect money demand, then we can write the equation for money demand as:
A. Md = VY. B. Md = (1/V) PY. C. Md = PY. D. Md = V(Y/P).