Bond prices and yields:
A. move together inversely.
B. are independent of each other.
C. do not change if the coupon is fixed.
D. move together in the same direction.
Answer: A
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Demand is inelastic when elasticity is ______.
a. less than 1 b. less than 2 c. more than 1 d. more than 2
In the aggregate expenditures model, the equilibrium GDP is:
A. Assumed to be equal to the potential GDP level B. Not necessarily equal to the full-employment GDP C. Always above the potential GDP level D. Always less than the full-employment GDP level
When the dollar appreciates relative to foreign currencies, it means that ________.
A. foreigners need less of their currency to buy one dollar B. we can buy less foreign currency with a given amount of dollars C. we need more dollars to buy each unit of another currency D. the value of foreign currencies decreased relative to our dollar
The introduction of a subsidy in a perfectly competitive marketplace that is originally in equilibrium will raise total surplus
a. True b. False Indicate whether the statement is true or false