Which of the following events occur when fiscal expansion is used without accommodating monetary policy?
A) Total government spending increases (or net taxes decrease).
B) Total private induced spending increases.
C) Private induced spending decreases.
D) A and B are both correct.
D
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Firms that issue callable bonds have the option of repaying the principal to the bond buyers before the stated maturity date for the bonds. Firms may call their bonds before maturity in order to avoid making some of the coupon payments
Should we expect the price of a callable bond to be higher or lower than the price of a non-callable bond that has the same coupon payment, principal, and effective yield? A) Price of the callable bond should be higher B) Price of the bonds should be the same C) Price of the callable bond should be lower D) We need to know the year in which the bond is called in order to compare the prices
(Consider This) The lines on a topographical map are analogous to a(n):
A. series of demand curves. B. series of supply curves. C. indifference map. D. series of budget constraints.