An increase in the discount rate ________ the present value of a bond and ________ the price of the bond.
A) increases; increases
B) decreases; decreases
C) decreases; increases
D) increases; decreases
B) decreases; decreases
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If country A has a larger trade triangle than country B, reciprocal demand will lead to an increase in the relative price of A's imports
Indicate whether the statement is true or false
There are three prerequisites to creating money. They are
a. currency, homogeneity, volatility b. fractional reserve system operating with financial intermediaries, people willing to make demand deposits, borrowers prepared to take out loans c. Federal Reserve Notes, willing creators of demand deposits, investment managers d. banks loaning new deposits to other banks, borrowers who create M1, a need for a store of value e. excess reserves, reserve requirements, financial intermediaries
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In Exhibit 3-16, if the market price of chairs is initially $15, a movement toward equilibrium would require:
A. ?no change, because an equilibrium already exists. B. ?the price to fall below $15 and both the quantity supplied and the quantity demanded to fall. C. ?the price to remain the same, but the supply curve to shift to the left. D. ?the price to fall below $15, the quantity supplied to fall, and the quantity demanded to rise.?
A business owned by two or more joint owners, or partners, who share the responsibilities and the profits of the firm and are individually liable for all the debts is a(n)
A. proprietorship. B. partnership. C. entrepreneur. D. corporation.