When interest rates in the economy fall, the prices of previously issued bonds
a. must fall.
b. must change, but may either rise or fall.
c. must rise.
d. may remain unchanged.
c
You might also like to view...
The alternative minimum tax (AMT) was created to
A. make sure that everyone had an equal chance of facing a tax audit. B. make sure that upper income taxpayers could not use deductions to avoid paying income taxes. C. make sure poor people paid at least something in taxes. D. make sure that everyone paid the same proportion of their income in taxes.
In the above figure, the firm is breaking even at points
A) a and c. B) b and d. C) c and d. D) a and d.
Which of the following actions best illustrates moral hazard?
a. A person adds risky stock to his portfolio. b. A person who has narrowly avoided many accidents applies for automobile insurance. c. A person is unwilling to buy a stock when she believes its price has an equal chance of rising or falling $10. d. A person purchases homeowners insurance and then checks his smoke detector batteries less frequently.
According to the life-cycle theory of consumption, people tend to consume ________ they earn during their early and later years.
A. less than B. the same as C. more than D. an amount unrelated to what