The rate of inflation in the United States since 1960 has:
A. declined steadily and predictably from 14% to 1.3%.
B. remained below 1.3% as a result of effective Federal Reserve monetary policy.
C. increased steadily from 1.3% to 14% and then decreased steadily back to 1.3%.
D. fluctuated between 1.3 and 14%, often catching many people by surprise.
Ans: D. fluctuated between 1.3 and 14%, often catching many people by surprise.
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Municipal bonds pay a relatively
a. low rate of interest because of their high default risk and because the interest they pay is subject to federal income tax. b. low rate of interest because of their low default risk and because the interest they pay is not subject to federal income tax. c. high rate of interest because of their high default risk and because federal taxes must be paid on the interest they pay. d. high rate of interest because of their low default risk and because the interest they pay is not subject to federal income tax.
Figure 10-7
Which of the panels in Figure 10-7 shows an economic expansion caused primarily by a change in aggregate demand?
a.
Panel (A)
b.
Panel (B)
c.
Panel (C)
d.
Panel (D)