Open market purchases of bonds by the Federal Reserve eventually
a. reduce the pressures on bond markets
b. increase real GDP
c. lead to open market sales of bonds
d. increase the interest rate
e. encourage tax increases
B
Economics
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Refer to Table 20-2. Assume the market basket for the consumer price index has two products—bread and milk—with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A) 118. B) 116. C) 86. D) 85.
Economics
Suppose a new cost-saving device will forever generate $1,000 net savings per year to a firm. The device costs $10,000. Using the Internal Rate of Return approach, will the firm make the investment?
A) definitely B) definitely not C) if the interest rate exceeds 10% D) if the interest rate is less than 10%
Economics