(Solution Document) Which statement does NOT correctly describe bonds?



Which statement does NOT correctly describe bonds?


a. Municipal bonds are used by state and local governments to finance school, roads and other public projects.
b.A one-year T-bill with a face value of $1000 and offered at $900 yields an interest rate of 11.1 percent.
c.U.S. treasury notes have maturities that range from 2 to 10 years whereas U.S. treasury bonds have maturities of 30 years.
d.Corporate bonds are usually issued at a lower rate of interest than government bonds because of their lower risk of default.



All of these influence supply except


a. prices of inputs
b. expected future prices
c. extent of competition in the market
d. price of the product.




Which of the following describes the inflation-unemployment trade off?


a.Monetary policies that expand the money supply and lower interest rates will lower inflation and unemployment.
b.Monetary policies that expand the money supply and raise interest rates will lower inflation and unemployment.
c.Fiscal policies that increase government spending and lower unemployment will cause inflation.
d.Fiscal policies that increase government spending and lower unemployment will lower inflation.



Which of the following describes the short-run time production period?


Firms can vary only one of the inputs in the production process.
Firms can vary all inputs into the production process.
Firms cannot vary any of the inputs into the production process.
Firms can choose to go out of business.



Which of the following best describes the classical view of economics?


a.  Because markets are inherently efficient, government intervention is rarely needed.
b. Because unemployment can be prolonged, government intervention is needed to stimulate job growth.
c. Because markets are inherently inefficient, government intervention is needed to smooth business cycles.
d.  Because markets are inherently efficient, government intervention is needed only in the short run.

 







About this question:

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by .
SiteLock