Prices of previously issued bonds have risen. It is likely that
A. market interest rates have fallen.
B. the stock price must change but could either rise or fall.
C. market interest rates have risen.
D. market interest rates have remained unchanged.
Answer: A
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Answer the following statements true (T) or false (F)
1) If competitive firms spent money on advertising their product, their profits would decrease. 2) The profit-maximizing quantity and price is determined after the optimal amount of advertising is determined. 3) To maximize profits, managers should purchase the quantity of advertising that maximizes gross profit. 4) If a firm only has one advertising medium, it maximizes its profit by first setting the marginal benefit from its product equal to its marginal cost of production and then determining the optimal amount to advertise. 5) It is possible for firms to not maximize profits even if they have optimally allocated their fixed advertising budget.
Production is efficient when
A) it generates a point beyond the production possibility curve. B) the maximum output possible is being produced given current levels of resources and technology. C) technological change occurs. D) the maximum amounts of the most important good are produced.
Explain how a higher rate of return on saving could, at least in theory, lead to lower saving
A lottery game pays $500 with .001 probability and $0 otherwise. The variance of the payout is
A) 15.8. B) 249.50. C) 249.75. D) 499.