What is the relationship between interest rates and bond prices? Explain
What will be an ideal response?
There is an inverse relationship between bond prices and interest rates. A bond pays a fixed sum of money each year during its life. At a higher interest rate, the present value of the future payments declines, reducing the value of the bond.
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In the foreign exchange market, if the demand for dollars permanently decreases, the Fed can maintain the exchange rate at its old equilibrium level indefinitely by buying dollars
Indicate whether the statement is true or false
GDP measured with constant prices is referred to as
A) real GDP. B) nominal GDP. C) the GDP deflator. D) industrial production.
Explain why a monopsonist's marginal factor cost curve must lie above its labor supply curve
An increase in inflation will cause the long-run aggregate supply curve to:
What will be an ideal response?