If the interest rate received in Mexico is greater than that obtained in the United States,
A) the demand for loans will increase in Mexico.
B) the supply of loans will decrease in the United States.
C) the supply of loans will decrease in Mexico.
D) the demand for loans will decrease in the United States.
B
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If you own a $1,000 face value bond with one year remaining to maturity and a five percent coupon rate and new bonds are paying 12 percent, what is the most you can get for your old bond?
A) $1,120 B) $1,000 C) $937.50 D) impossible to determine without additional information
The phrases "once in, always in" and "once in, always grows" aptly describe a criticism of the Keynesian policy prescription for
a. the self-correcting nature of the economy b. moderating aggregate output c. closing a recessionary gap with government spending d. the balanced budget multiplier e. closing an inflationary gap