Which of the following is a correct statement about bond prices, other things equal?
a. a lower face value leads to a higher bond price
b. a higher risk of default leads to a higher bond price
c. a higher risk of default leads to a lower yield
d. fewer coupon payments lead to a higher bond price
e. a higher price leads to a lower yield
E
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A ________ is owned by its stockholders
A) sole proprietorship B) partnership C) corporation D) All of the above are correct.
The W = MRP ethic states that individuals are paid according to the value of their opportunity cost
Indicate whether the statement is true or false
Economic analysis indicates that the monetary policy of the 1930s, which shifted back and forth between restrictive monetary policy and expansionary monetary policy, would likely result in
a. economic stability and growth in real levels of output. b. keeping the general level of prices relatively stable because the periods of restrictive policy would just offset the periods of expansion. c. an environment of uncertainty, which would lead to economic instability. d. economic stability, because changes in monetary policy can be counted on to exert a predictable impact on the economy quickly.
Suppose the economy is operating below the natural level of output. Discuss the arguments for and against using a devaluation in such a situation
What will be an ideal response?