The prices of all fixed-income assets (bonds)
A. are independent of the interest rate.
B. vary inversely with the interest rate.
C. are determined by the U.S. Treasury.
D. vary directly with the interest rate.
Answer: B
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A technological breakthrough lowers the cost of manufacturing DVDs. As a result, the market changes to a new equilibrium because of a(n):
a. upward movement along the demand curve for DVDs. b. rightward shift in the demand curve for DVDs. c. rightward shift in the supply curve for DVDs. d. shortage of DVDs.
The problem of political instability has been greatest in which continent?
A. South America B. Europe C. Asia D. Africa
Refer to Figure 4.8. If half of your friends go to the beach and half go to the park, you will receive a payoff of ________ if you go to the beach
A) 0 B) 250 C) 500 D) You cannot determine your payoff because the figure represents your payoff from going to the park.
The substitution effect of a change in the price of cauliflower is the portion of the change in the quantity of cauliflower demanded that can be attributed to the change in the price of a substitute vegetable such as asparagus
Indicate whether the statement is true or false