When bond prices rise,
A. stock prices must fall.
B. interest rates must fall.
C. interest rates must rise.
D. bankruptcies generally increase.
Answer: B
You might also like to view...
If the price of gasoline decreases, what will be the impact in the market for public transportation?
A) The quantity of public transportation demanded increases. B) The quantity of public transportation demanded decreases. C) The demand curve for public transportation shifts to the left. D) The demand curve for public transportation shifts to the right.
Other things equal, investment spending will increase when:
a. interest rates are lowered. b. firms operate under full capacity. c. corporate taxes are increased. d. capacity utilization is low. e. the cost of capital rises.
If the economy is simultaneously in long-run and short-run equilibrium, which of the following is true?
a. Aggregate quantity supplied is greater than potential output. b. Aggregate quantity demanded is less than potential output. c. Aggregate quantity demanded is equal to potential output. d. The aggregate demand curve is horizontal at the potential output level.
The existence of absolute advantage
A. implies that there will be no benefits from trade taking place between two nations. B. refers to a situation where one country can produce one particular good with fewer units of resources than the other country. C. fosters the self-sufficiency of the two nations. D. refers to a situation in which one country can produce all goods with fewer units of resources than can another country.