Whenever the interest rate goes up, the price of bonds will go down.
Answer the following statement true (T) or false (F)
True
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A possible reconciliation of the Leontief Paradox is that the United States has high tariffs on capital intensive goods and low tariffs on labor intensive goods
Indicate whether the statement is true or false
Of the world's countries, which of the following can be said of their real GDP growth rates in recent years?
A. Countries like China and India have experienced higher rates of growth than the U.S. B. The U.S. has always had the highest growth rate in the world. C. Neither of these statements is true. D. Both of these statements are true, since the U.S. was highest until 2010, when China surpassed it.
Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.90 . An increase in government spending of $1 billion would result in an increase in GDP of:
a. $0. b. $0.9 billion. c. $1.0 billion. d. $9.0 billion. e. $10.0 billion.
If the market supply curve is perfectly elastic and an excise tax is imposed,
a. all of the tax is paid by buyers b. all of the tax is paid by sellers c. the tax burden is divided equally between buyers and sellers d. the market price will not change e. the market price will fall by the amount of the tax