Bond prices in the marketplace will fall when
a. interest rates fall.
b. the company is losing money.
c. interest rates rise.
d. the company is making money.
c
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Is PPP a theory of exchange rate determination? Explain why or why not?
What will be an ideal response?
The short-run market supply curve is
a. the horizontal summation of each firm's short-run supply curve. b. the vertical summation of each firm's short-run supply curve. c. the horizontal summation of each firm's short-run average cost curve. d. the vertical summation of each firm's short-run average cost curve.
When fear of default on bonds issued by U.S. corporations decline, then
a. net capital outflow and the exchange rate both rise. b. net capital outflow rises and the exchange rate falls. c. net capital outflow falls and the exchange rate rises. d. net capital outflow and the exchange rate both fall.
While money is an asset not all assets are money because:
A. only money is a good asset to hold during times of inflation. B. money must be legal tender. C. only money stores value. D. money works as a means of payment.