A company that continues to have strong profit performance during an economic downturn when many other companies are suffering losses or failing should see:
A. the demand for their bonds decrease and their yields decrease.
B. the demand and price for their bonds decrease.
C. an increase in the yield of their bonds and the price of the bond increases.
D. their bond rating maintained or actually increase.
Answer: D
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Which of the following tax systems would help reduce income inequality the most?
A) a consumption tax system B) a proportional tax system C) a progressive tax system D) a regressive tax system
If the level of government spending rises and simultaneously there is a fall in the money stock, we definitely know that
a. income will rise. b. the change in the interest rate will be ambiguous. c. income will fall. d. the interest rate will fall. e. None of the above
Political candidates tend to identify themselves as being "middle-of-the-roaders", while they tend to label their opponents as a member of the political fringe
Indicate whether the statement is true or false
The real-business-cycle theory holds that business fluctuations are caused by:
A. factors affecting aggregate demand. B. incorrectly anticipated government stabilization policies. C. significant changes in technology and resource availability. D. "stop-and-go" monetary policies.