When the coupon rate on newly issued bonds ________ relative to older, outstanding bonds, the market price of the older bond ________
A) increases; rises in the secondary market B) increases; falls in the secondary market
C) decreases; falls in the primary market D) decreases; falls in the secondary market
B
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The majority of the income earned in the United States is paid in
A) wages. B) rent. C) profit. D) dividends. E) interest.
Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect
A) the unemployment rate to fall. B) the unemployment rate to rise. C) no change in the unemployment rate, but a decrease in the natural rate of unemployment. D) an increase in the unemployment rate, but a decrease in the natural rate of unemployment.
If the price elasticity of demand coefficient equals 2, this means a 10 percent increase in price will result in a 20 percent decrease in the quantity demanded
a. True b. False Indicate whether the statement is true or false
Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are
A. Unrelated in the sawmill operator's decision. B. Substitutes in production. C. Complements in production; by-products. D. None of the choices are correct.