In the short-run macro model, if GDP is $5 trillion and aggregate expenditure is $4 trillion,
a. GDP will rise because inventories will rise
b. GDP will fall because inventories will fall
c. GDP will remain the same because this is an equilibrium
d. investment will decrease
e. the government will have to increase taxes
B
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A firm's net worth is calculated as
A) the difference between a firm's revenues and explicit costs. B) the difference between a firm's liabilities and outstanding equities. C) the difference between a firm's assets and liabilities. D) the difference between a firm's revenues and implicit costs.
A bond issuer agrees to pay a stated nominal amount each year. An increase in the nominal interest rate will cause
A) the price of the bond to fall. B) the price of the bond to rise. C) the nominal value of the bond's coupon to rise. D) the nominal value of the bond's coupon to fall.