Beginning in the latter part of 1999, the Federal Reserve raised interest rates. What do you predict happened to the prices of bonds already in the market? How can you explain this behavior?

The price of bonds already in the market fell. Since new bonds would be paying a higher interest rate than old bonds, the only way to induce investors to buy old bonds will be for their price to fall, causing their effective interest rate to rise along with the market rate.

Economics

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Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. If the market price is 4 cents per page, what is Fast Copy's profit maximizing level of output?

A) 16 pages per hour B) 32 pages per hour C) 48 pages per hour D) 64 pages per hour

Economics

The long-run aggregate supply curve shifts left if

a. the capital stock increases. b. there is a natural disaster. c. the government removes some environmental regulations that limit production methods. d. None of the above is correct.

Economics