If the price of an existing bond increases, the current yield increases.
Answer the following statement true (T) or false (F)
False
The current yield is one measurement of the rate of return on a bond and is equal to the annual interest payment divided by the bond's price. If the bond price increases, the current yield goes down (the denominator increased).
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Secured property rights provide individuals with incentive to use the resources they own productively because they realize the gains from this use
Indicate whether the statement is true or false
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, when 1 unit is produced:
A. marginal revenue exceeds marginal costs, and the firm should produce more. B. marginal costs exceed marginal revenue, and the firm should produce more. C. marginal revenue exceeds marginal costs, and the firm should produce less. D. marginal costs exceed marginal revenue, and the firm should produce less.
Which of the following is a monetary policy tool used by the Federal Reserve Bank?
A. Decreasing the rate at which banks can borrow money from the Federal Reserve B. Increasing the reserve requirement from 10% to 12.5% C. Buying 500 million worth of government securities, such as treasury bills D. All of the above
To calculate market supply, we
A. Find the difference between the quantity supplied and the quantity demanded at each price. B. Add the quantities supplied for each individual supply schedule horizontally. C. Add the quantities supplied for each individual supply schedule vertically. D. Find the average quantity supplied at each price.