A bond’s price is sensitive to changes in
A. the interest rate.
B. the accepted rate of return on investment.
C. investor confidence in the stability and credit worthiness of the firm.
D. All of these responses are correct.
Answer: D
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If an individual's income increases
A) the person's indifference curves shift outward in a parallel manner. B) the person's budget line shifts outward in a parallel manner. C) there will be no impact on the individual's budget line or indifference curves. D) None of the above answers is correct.
A tax levied on the buyers of a good shifts the
a. supply curve upward (or to the left). b. supply curve downward (or to the right). c. demand curve downward (or to the left). d. demand curve upward (or to the right).
Research has shown that nations with highly independent central banks tend to have low
A) inflation. B) interest rates. C) economic growth. D) unemployment.
Depreciation refers to: a. the value of leisure goods
b. changes in exchange rates. c. income that we earn but do not receive. d. investment undertaken merely to replace worn-out capital. e. the effects of government subsidy programs.