Will increases in federal spending always increase real GDP and employment in the short run? Are there any circumstances in which the federal government would not want to increase its spending even if it results in higher uotput and lower unemployment in the short
What will be an ideal response?
Answer: Yes if the economy is producing at less than its potential output and has some cyclical unemployment
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Which of the following statements is false?
A. The Treasury bond information published under the column heading "Yield" is based on the ask price of the bond. B. The Treasury bond information published under the column heading "Yield" is based on the assumption that the bond is held to maturity. C. The Treasury bond information published under the column heading "Bid" indicates the price a buyer will pay if he buys the bond. D. The Treasury bond information published under the column heading "Bid" is the price a buyer will receive if she sells the bond.
At expiration, the value of an option:
A. is equal to the intrinsic value. B. is less than the intrinsic value. C. is equal to the time value of the option. D. is greater than the intrinsic value.