If the current price of a bond is equal to its face value,
A) there is no capital gain or loss from holding the bond until maturity.
B) the yield to maturity must be greater than the current yield.
C) the current yield must be greater than the coupon rate.
D) the coupon rate must be greater than the yield to maturity.
A
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A firm sets its output where
A) marginal profit minus marginal cost equals zero (MP - MC = 0). B) marginal revenue minus marginal profit equals zero (MR - MP = 0). C) marginal revenue minus marginal cost equals zero (MR - MC = 0). D) marginal revenue minus marginal cost is greater than zero (MR - MC > 0)
Which of the following economic changes will decrease household expenditures?
a. Population growth b. Lower income taxes c. An appreciation of the domestic currency d. Increased consumer confidence e. A higher domestic price level
Many rural bank failures in the 1980s can be attributed to
a. the high farm prices of the 1970s that continued to rise in the 1980s and 1990s b. farmers' reluctance to buy more machinery and expand production due to the high farm prices of the 1970s c. the collapse of farm prices and land values in the early 1980s d. numerous loans made to oil-export economies such as Mexico and Venezuela e. the lack of rural loan portfolios being involved in farm ventures
In the shortrun (specificfactors) model, foreign direct investment is expected to cause a(n) ________ in the production of the capitalintensive good and a(n) ________ in the production of the landintensive good in the receiving country
a. decrease; decrease b. increase; decrease c. decrease; increase d. increase; increase