When the interest rate rises, bond values
A. rise.
B. fall.
C. will either increase or decrease depending on the type of bond.
D. are unchanged because the interest rate paid on a bond is fixed.
Answer: B
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Which of the following is most like money?
A) game arcade tokens B) board game "money" C) credit cards D) baseball trading cards E) frequent flyer miles
Financial intermediaries ______.
a. use corporate profits for capital investment b. are residual claimants of corporate resources who receive a proportion of profits c. make household funds available to firms d. provide fixed, regular dividend payments to their clients
In a closed economy that does not have international trade, the spending multiplier equals _____
a. 1/MPS b. 1/MPC c. 1/(MPC-1) d. 1/(1-MPS) e. 1/(1+MPS)
If mayonnaise and Miracle Whip are substitutes, then which of the following would increase the demand for Miracle Whip?
a. a decrease in the price of Miracle Whip
b. an increase in the price of mayonnaise
c. a decrease in the price of mayonnaise
d. Both a and b are correct