When bond prices fall, interest rates rise.
Answer the following statement true (T) or false (F)
True
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Marginal cost eventually increases because
A) of the law of diminishing returns. B) eventually each additional worker produces a successively smaller addition to output. C) the marginal product of the variable input eventually falls. D) All of the above answers are correct.
Consider the above figure. The equation for the saving function is
A) S = 40 - 0.67 Yd. B) S = 40 + 0.33 Yd. C) S = -40 + 0.67 Yd. D) S = -40 - 0.33 Yd.
Because a bank pays a lower interest rate on deposits than it charges on loans, it cannot fail
a. True b. False Indicate whether the statement is true or false
From the Fisher equation we see that the nominal interest rate and expected inflation have:
A. an inverse relationship. B. a relationship which is direct and one-to-one. C. no relationship. D. a relationship which is direct but less than one-to-one.