When interest rates rise, the price of bonds:

(a) Increases
(b) Decreases
(c) Stays the same
(d) can be determined.


(b)

Economics

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Explain why the expenditure multiplier is greater than 1

What will be an ideal response?

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When bond prices rise,

A. stock prices must fall. B. interest rates must fall. C. interest rates must rise. D. bankruptcies generally increase.

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In the short run, a monopolist:

a. always earns an economic profit. b. never earns an economic profit. c. never earns an accounting profit. d. None of the above are correct.

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Buying a stock on margin will

A. guarantee gains regardless of whether a stock goes up or down in price B. increase gains if the stock rises C. result in a gain of the stock falls D. will have no impact on stock returns

Economics