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Question
According to the expectations theory of the term structureA. the interest rate on long-term bonds will exceed the average of short-term interest rates that people expect to occur over the life of the long-term bonds, because of their preference for short-term securities.
B. interest rates on bonds of different maturities move together over time.
C. buyers of bonds prefer short-term to long-term bonds.
D. buyers require an additional incentive to hold long-term bonds.
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
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B. U.S. Treasury.
C. Federal Reserve System.
D. Bureau of Monetary Affairs.
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A. balanced budgets.
B. rapidly growing money supplies.
C. falling money supplies.
D. constant money supplies.
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A. exchanges.
B. banks.
C. over-the-counter markets.
D. finance companies.
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Banks, savings and loan associations, mutual savings banks, and credit unions
A. are no longer important players in financial intermediation.
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C. have been adept at innovating in response to changes in the regulatory environment.
D. produce nothing of value and are therefore a drain on society's resources.
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Which of the followings does NOT describe the goods market in the ISLM model?
A. consumption function
B. investment function
C. government spending and tax
D. money demand function
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B. rises; falls
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An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________.
A. IS; right
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Q:
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Q:
A policy in which the money supply is kept growing at a constant rate regardless of the state of the economy is
A. a Taylor rule.
B. a discretionary policy.
C. a policy rule advocated by monetarists.
D. advocated by activists.
Q:
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B. the Lucas critique.
C. public choice theory.
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Q:
The Lucas critique indicates that
A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
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Q:
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Q:
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Q:
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Q:
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Q:
Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
Q:
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Q:
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B. right; depreciate
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