Refer to Figure 10.7. A movement from point D to point C could be caused by

A) a positive demand shock.
B) an increase in the term premium investors expect in the future.
C) an increase in the term structure effect.
D) an increase in the expected rate of inflation.

D

Economics

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A federal deficit of $300 billion means that

A) the government plans on collecting $300 billion in taxes this year. B) the government has a total debt of $300 billion. C) the government is spending $300 billion a year more than it is collecting in taxes. D) government spending is $300 billion a year.

Economics

Because its market share is insignificant, a perfectly competitive firm faces an inelastic demand curve

Indicate whether the statement is true or false

Economics