Assuming that coffee and tea are substitutes, a decrease in the price of coffee will result in
a. A leftward shift in the demand for tea
b. A downward movement along the demand curve for tea.
c. A rightward shift in the demand for tea.
d. An upward movement along the demand curve for tea.
a
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A corporate bond is not as liquid as cash because the bond
A) cannot be converted to spendable dollars either until it matures or is sold to another investor. B) can be exchanged only for the goods or services produced by the company that issued the bond. C) must be exchanged for a stock certificate before it can be converted to spendable funds. D) represents an exchange for gold only.
The average fixed cost curve
a. always declines with increased levels of output. b. always rises with increased levels of output. c. declines as long as it is above marginal cost. d. declines as long as it is below marginal cost.
In a random effects model, we assume that the unobserved effect is correlated with each explanatory variable.
Answer the following statement true (T) or false (F)
As the interest rate increases,
A. the future return to an investment decreases. B. the present value of future benefits decreases. C. the present value of future benefits increases. D. the present value of a future investment increases. E. the discount rate decreases.