In the figure above, the price of bonds would fall from P1 to P2 when
A) inflation is expected to increase in the future.
B) interest rates are expected to fall in the future.
C) the expected return on bonds relative to other assets is expected to increase in the future.
D) the riskiness of bonds falls relative to other assets.
A
You might also like to view...
Workers and firms both expect that prices will be 2.5% higher next year than they are this year. As a result
A) workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease. B) aggregate demand will increase by 2.5%. C) the purchasing power of wages will rise if wages increase by 2.5%. D) the short-run aggregate supply curve will shift to the left as wages increase.
The major problem with direct controls as an environmental protection measure has been
a. inept administrators. b. corrupt judges. c. illegal dumping. d. legislation with no teeth.
Which of the following calculates the cost of purchasing a specific bundle of goods and services in each country and uses this measure to convert the incomes of different countries to a common currency so they may be more accurately compared?
a. the consumer price parity (CPP) method b. the purchasing power parity (PPP) method c. the GDP deflator exchange (GDPDE) method d. the inflation conversion factor (ICF) method
A positive externality
a. causes the product to be overproduced. b. provides an additional benefit to market participants. c. benefits consumers because it results in a lower equilibrium price. d. is a benefit to a market bystander.