Which of the Following Is a Macroeconomic Issue

question 416

Multiple Choice

Which of the following is a macroeconomic issue?

• A) How federal government budget deficits affect interest rates.
• B) What determines the amount a firm will produce.
• C) The cause of a decline in the price of peanut butter.
• D) How a rise in the price of sugar affects the market for sodas.

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Definitions:

Simple Interest

Interest calculated on the principal amount of a loan or investment, without compounding over time.

Yield

The income return on an investment, typically expressed as an annual percentage rate based on the investment’s cost, its current market value, or its face value.

Promissory Note

A financial instrument that contains a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Commercial Paper

A short-term unsecured debt instrument issued by corporations, typically for financing accounts receivable and inventories.