04 Jun False 3. The risk-free interest rate is the rate on long-term U.S. government bonds.
Question
Question
TRUE / FALSE
1. A side benefit of international trade is that it links national interests and increases the opportunity costs of war.
True
False
2. When C + Ig = GDP in a private closed economy, S = Ig and there are no unplanned changes in inventories.
True
False
3. The risk-free interest rate is the rate on long-term U.S. government bonds.
True
False
4. Bond prices and interest rates are directly or positively related.
True
False
5. The public debt is the accumulation of all deficits and surpluses that have occurred through time.
True
False
6. The M2 money supply may be larger or smaller than the M1 money supply depending on the size of small-denominated time deposit balances and Money Market Mutual Fund balances held by individuals.
True
False
7. Excess reserves are the amount by which required reserves exceed actual reserves.
True
False
8. The public debt is held as Treasury bills, Treasury notes, Treasury bonds, and U.S. savings bonds.
True
False
9. The equilibrium price level and equilibrium level of real GDP occur at the intersection of the aggregate demand curve and the aggregate supply curve.
True
False
10. Investment is highly stable; it increases over time at a very steady rate.
True
False
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