As the price level rises
A. people will want to buy fewer bonds, so the interest rate falls.
B. people will want to buy fewer bonds, so the interest rate rises.
C. people will want to buy more bonds, so the interest rate falls.
D. people will want to buy more bonds, so the interest rate rises.
Answer: B. people will want to buy fewer bonds, so the interest rate rises.
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Referring to Figure 19.1, Mexican goods will become more expensive in the United States if the exchange rate goes from ________ to ________ pesos to the dollar
A) 10; 13 B) 11; 13 C) 12; 11 D) 12; 13
An employee gains $500 from shirking. Thus, to deter shirking, the employer makes employees post a bond equal to $1,000, and installs monitoring devices to detect shirking. What is the probability that these devices can detect shirking?
A) 30% B) 100% C) 50% D) 95%