If bond prices are plotted on a graph with interest rates on the vertical axis,
A. the curve produced has a positive slope.
B. the curve display no relationship to one another.
C. the curve produced has a negative slope.
D. the curve is a horizontal straight line at the current interest rate.
Answer: C
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Other things remaining the same, a ________ in the real interest rate ________ the quantity of saving supplied and ________ the quantity of loanable funds supplied
A) rise; increases; decreases B) fall; increases; decreases C) fall; increases; increases D) fall; decreases; increases E) rise; increases; increases
How can managers of natural monopolies exaggerate their costs?
What will be an ideal response?
When government intervenes in a competitive market by imposing an effective price ceiling, we would expect the quantity supplied to ________ and the quantity demanded to ________
A) fall; rise B) fall; fall C) rise; rise D) rise; fall
When a firm generates external benefits, a more efficient outcome would result if
a. the firm produced a larger output level. b. the firm reduced its output level. c. a tax were levied on the firm equal to the dollar amount of the externalities. d. price were fixed below the firm's per-unit cost.