If realized capital gains are counted as household savings, then the saving rate in the US over the past 2 decades has
a) fallen sharply from 10% to nearly zero
b) hovered near zero and occasionally been negative
c) remained roughly steady at 10%
d) increased sharply
e) varied dramatically as the stock market has fluctuated
c) remained roughly steady at 10%
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The demand for money curve shows
A) the quantity of money demanded at each interest rate, holding all other determinants unchanged. B) the quantity of money made available by the Federal Reserves, holding all other determinants unchanged. C) the quantity of money demanded at each bond price, holding all other determinants unchanged. D) the quantity of money demanded at price level, holding all other determinants unchanged.
Municipal bonds have default risk, yet their interest rates are lower than the rates on default-free Treasury bonds. This suggests that
A) the benefit from the tax-exempt status of municipal bonds is less than their default risk. B) the benefit from the tax-exempt status of municipal bonds equals their default risk. C) the benefit from the tax-exempt status of municipal bonds exceeds their default risk. D) Treasury bonds are not default-free.