When the coupon rate on newly issued bonds increases from 5% to 6%, the prices of existing bonds:
A. increase.
B. remain unchanged.
C. increase only if the coupon rate is less than 6%.
D. decrease.
Answer: D
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An important difference between perfect competition and monopoly is
A) a monopoly is profitable and a perfect competitor is not. B) the monopoly faces a downward sloping demand curve and the perfect competitor faces a horizontal demand curve. C) the monopoly faces an inelastic demand curve and the perfect competitor faces an elastic demand curve. D) a monopoly is not regulated by the market, while a perfect competitor is regulated by the market.
The dominant school of economic thought until midway through the Great Depression of the 1930s was:
a. classical. b. Keynesian. c. monetarism. d. supply-side. e. rational expectations.
Invisible Hand Principle
What will be an ideal response?
The unemployment rate is equal to the number of people who are unemployed divided by the number of people in the labor force.
Answer the following statement true (T) or false (F)