Which of the following states the relationship between a bond's price and its yield?
a. As the price falls, the yield falls.
b. Price and yield are usually independent of each other.
c. As the price rises, the yield rises.
d. As the price rises, the yield falls.
e. As the yield rises, so does the price.
D
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Liquidity is the
A) speed with which the price of an asset changes as its intrinsic value changes. B) inverse of the velocity of money. C) same as the velocity of money. D) ease with which an asset can be converted into money.
Refer to Figure 24-3. Suppose the economy is at point A. If the economy experiences a supply shock, where will the eventual short-run equilibrium be?
A) A B) B C) C D) D
In 2006, before the start of the recession, the employment—population ratio was 63.4 percent. In August 2015, more than six years after the end of the recession, the ratio
A) was still only 59.4 percent. B) was back to its 2006 level. C) had increased to 72.3 percent. D) was still 50 percent lower than the ratio in 2006.
Refer to Figure 12-10. The total cost at the profit-maximizing output level equals
A) $4,800. B) $3,300. C) $2,500. D) $1,800.