Refer to the diagram. Discretionary fiscal policy designed to slow the economy is illustrated by:
A. the shift of curve T 1 to T 2 .
B. the shift of curve T 2 to T 1 .
C. a movement from a to c along curve T 2 .
D. a movement from d to b along curve T 1 .
B. the shift of curve T 2 to T 1 .
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Whenever a choice is made:
A) the value of all the other choices that could have been made is called opportunity cost. B) normative economics is encountered. C) the problem of "all other things unchanged" results. D) the opportunity cost of that choice is the highest-valued other choice that could have been made.
Which of the following are TRUE for discount bonds?
A) A discount bond is bought at par. B) The purchaser receives the face value of the bond at the maturity date. C) U.S. Treasury bonds and notes are examples of discount bonds. D) The purchaser receives the par value at maturity plus any capital gains.