If a bond's rating improves, we would expect:
A. the demand for and the yield of this bond to increase, all other factors constant.
B. both the demand for and the price of the bond to decrease, all other factors constant.
C. the demand for this bond to increase, all other factors constant.
D. the demand for this bond to decrease, and its yield to increase, all other factors constant.
Answer: C
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Why do the sellers of some whiskeys pay for advertisements to tell people their whiskey is extremely expensive?
A) Because the sellers either do not know or do not accept the law of demand B) To allocate the product to people who will most appreciate it C) To increase the demand D) To lower the demand and keep production costs low E) To prevent "price shock" among potential customers
Suppose that the price elasticity of demand for a product is -1 and that the price elasticity of supply is +1 . Assume also that the income elasticity of demand is +2 . Then an increase in income of 10% will raise equilibrium price by:
a. 10%. b. 5%. c. 20%. d. an annual amount that cannot be determined.
The larger the marginal propensity to consume, the larger the multiplier effect
a. True b. False Indicate whether the statement is true or false
If the Federal Reserve sets a required reserve ratio of 0.2 and a bank has $100 million in loans and $80 million in deposits, what is the level of required reserves for the bank?
a. $100 million b. $16 million c. $80 million d. $20 million e. $36 million