A rise in the price of a bond causes the yield of the bond to
A. rise.
B. fall.
C. remain unchanged.
D. rise if it's a short-term bond, fall if it's a long-term bond.
Answer: B
You might also like to view...
The optimal decision rule is less than unanimity
a. True b. False
Euro-optimists believe the success of the euro to be the result of all of the following, EXCEPT:
A) more trade leads to more success for the euro. B) more countries are lining up to join the euro. C) more capital and labor mobility will take place under the euro. D) more scope for asymmetric shocks, rather than symmetric shocks.
The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The market equilibrium with no government intervention is raising ________
A) 0 goats B) 40 goats C) 50 goats D) 55 goats
The error term in a multiperiod regression
A) is serially correlated. B) causes OLS to be inconsistent. C) is serially correlated, but less so the longer the forecast horizon. D) is serially uncorrelated.