Which of the following is correct? When the expected amount supplied exceeds the expected amount demanded, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall.
b. Inventories rise, unemployment tends to fall, and prices tend to rise.
c. Inventories fall, unemployment tends to rise, and prices tend to rise.
d. It is impossible for these two to be unequal.
e. The nation's economy expands.
.A
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The straight-line production possibilities curve introduced in the text
A) is not subject to increasing opportunity costs. B) fails to reflect tradeoffs. C) fails to benefit trading nations. D) refutes the principles of comparative advantage. E) All of the above.
Which of the following is the best description of the risks of corporate bonds?
a. the firm declines to pay dividends b. both bankruptcy and higher market interest rates c. only bankruptcy d. lower market interest rates e. both the firm declines to pay dividends and higher market interest rates