You have a bond that pays $125 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 $140 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 $75 per year.
Answer: D
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As a firm hires more and more workers:
A) the value of marginal product of the additional workers eventually increases. B) the marginal product of the additional workers remains the same. C) the value of marginal product of the additional workers remains the same. D) the value of marginal product of the additional workers eventually decreases.
The sum of the current account plus the capital and financial account plus the official settlements account equals
A) 100 percent. B) U.S. official reserves. C) U.S. exports. D) zero. E) government expenditures.
The clearest trade-off between unemployment and inflation occurred between 1960 and 1969
Indicate whether the statement is true or false
In a command socialist economy:
A) resources are government owned but individuals make some decisions over their use. B) resources are government owned and government exercises broad power over their use. C) resources are privately owned and individuals make decisions over their use. D) resources are privately owned but government exercises broad power over their use.