You have a bond that pays $60 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) Coupon payments on newly-issued bonds rise to $80 per year.
B) The likelihood that the firm issuing your bond will default on debt increases.
C) The price of a share of stock in the company falls.
D) Coupon payments on newly-issued bonds fall to $50 per year.
Answer: D
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Juliana, Gabrielle, and Marcela want to start a business they are the only owners and the company does not issue stock. The type of business they want to start is a
A) partnership. B) corporation. C) sole proprietorship. D) Any of the above could be correct.
New Keynesian economists believe that
a. movements in unemployment can be explained by voluntary movements in and out of the labor market.. b. everyone who is not working is involuntary unemployed. c. labor markets clear in the long-run. d. the new classical model has merit, but recessions cannot be adequately explained in a model of with perfectly flexible prices and wages.
If an increase in investment of $100 billion generates an increase of $500 billion in real GDP, the multiplier is
A. 20 B. 50 C. 1.50. D. 5.00.
The price of labor in the poultry industry has just increased. For poultry, this will lead to
A. a decrease in price and a decrease in quantity. B. an increase in price and an increase in quantity. C. a decrease in price and an increase in quantity. D. an increase in price and a decrease in quantity.