When bond prices go up, interest rates
A. go up.
B. stay the same.
C. go down.
D. may go up, stay the same, or go down.
C. go down.
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Suppose a tax equal to the value of the external cost of producing car batteries is imposed by government on all car battery manufacturers. All of the following will result from the tax except
A) an increase in demand for car batteries. B) a decrease in the market supply of car batteries. C) an increase in the equilibrium price of car batteries. D) a decrease in the equilibrium quantity of car batteries produced and consumed.
In a period of rapid, unexpected inflation, resources can be lost
A) when firms invest in research and development instead of forecasting inflation. B) when firms use resources to forecast inflation. C) because rapid inflation almost always turns into a hyperinflation. D) Both answers B and C are correct.
Does the benefits received principle work well for all public goods?
Protectionism is generally a cost effective method of saving jobs.
Answer the following statement true (T) or false (F)