An unexpected rise in the growth rate of the CPI should send bond prices __________ and stock prices __________
A) up; up
B) up; down
C) down; up
D) down; down
D
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Suppose the rate of inflation unexpectedly decreases from 7% to 4%. Which one of the following would most likely benefit from this unexpected reduction in the rate of inflation?
A) creditors. B) a borrower whose loan has a fixed nominal interest rate. C) debtors. D) workers who are covered by a COLA agreement.
The term Ceteris paribus means that:
a. everything is changing. b. all other things remain unchanged. c. no one knows which variables will change and which will remain constant. d. the basic principle of economics do not apply to the case being considered.
A vertical long-run aggregate supply curve indicates that
a. an increase in the price level will not expand an economy's output capacity in the long run. b. outputs greater than the long-run supply constraint cannot be achieved. c. an increase in the price level will permit the economy to achieve a higher level of output. d. an increase in the price level will promote technological change and more rapid economic growth.
PriceQuantity Demanded$510$420$330$240$150Refer to the table above. What is the price with the maximum total revenue?
A. $5 B. $3 C. $2 D. $4