When the price of a coupon bond increases,
A) the coupon rate declines
B) the coupon rate increases
C) the current yield declines
D) the current yield increases
C
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Keynesian economists argue that the automatic adjustment of wages and prices in the macro economy is quite rapid
a. True b. False Indicate whether the statement is true or false
Internalizing an externality makes _____
a. consumers pay a price that is equal to their private willingness to pay b. producers charge a price that is equal to the marginal cost of production faced by them c. the government tax a third party who has been affected by the externality d. market participants consider the costs of or benefits to other parties while making decisions
A country with negative net exports has a trade surplus
a. True b. False Indicate whether the statement is true or false
If the demand for money depends on the interest rate, then a ________ in the money supply will increase nominal GDP by ________.
A. 5% decrease; more than 5% B. 5% increase; less than 5% C. 5% decrease; exactly 5% D. 5% increase; more than 5%