Suppose that savers become less willing to purchase medium-quality corporate bonds. The result will be that the prices of medium-quality corporate bonds will
A) fall relative to the price of U.S. Treasury securities, but rise relative to the price of high-quality corporate bonds.
B) rise relative to the price of U.S. Treasury securities, but fall relative to the price of high-quality corporate bonds.
C) rise relative to the prices of U.S. Treasury securities and high-quality corporate bonds.
D) fall relative to the prices of U.S. Treasury securities and high-quality corporate bonds.
D
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Using the figure above, suppose a subsidy of $15,000 per student is provided to private colleges. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________
A) exceeds; above the efficient quantity B) exceeds; below the efficient quantity C) is below; above the efficient quantity D) is below; below the efficient quantity E) equals; efficient
Money supply would expand if people chose to hold borrowed funds in cash rather than in checking accounts
a. True b. False Indicate whether the statement is true or false
A recent push in development economics is to:
A. fund only those programs that prove to be effective. B. put more focus on a program's effectiveness. C. stop the trial and error process of funding programs that "might" work. D. All of these statements are true.
Price discrimination occurs when
a. price exceeds marginal cost b. a firm charges different customers different prices, and the differences are not explained by cost factors c. price exceeds average cost d. a firm charges different customers different prices, where these differences are based on cost differences e. price equals average variable cost