A shortage in the market for economics textbooks will ___________ the price of textbooks.
a) decrease
b) initially not change but then decrease
c) increase
d) not change
c) increase
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Good news about an economic indicator __________ the denominator of a bond's valuation formula, __________ the bond's price
A) raises; raising B) raises; lowering C) lowers; raising D) lowers; lowering
Frictional unemployment can be the consequence of
a. workers leaving existing jobs to find ones they like better. b. one industry declining while another is growing. c. changes in the working conditions offered by competing firms. d. All of the above are correct.
An increase in household saving causes consumption to
a. rise and aggregate demand to increase. b. rise and aggregate demand to decrease. c. fall and aggregate demand to increase. d. fall and aggregate demand to decrease.
One year before maturity, the price of a bond with a principal amount of $1,000 and a coupon rate of 5 percent paid annually rose to $1,019. The one-year interest rate must be:
A. 5 percent. B. 2 percent. C. 6 percent. D. 3 percent.