Some universities now offer "tuition bonds." Parents can purchase a bond at the time their child is born. The bond is redeemable in 18 years for an amount of money equal to the cost of the university's tuition at that time
Which of the following would reduce the market price of these bonds? A) An increase in the rate of interest
B) A decrease in the rate of interest
C) The passage of legislation limiting increases in college tuition to the rate of inflation
D) both A and C
E) both B and C
D
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When the Fed decides to enact expansionary monetary policy, the supply of loanable funds:
A. and the demand for loanable funds both decrease. B. and the demand for loanable funds both increase. C. increases, while the demand for loanable funds decreases. D. decreases, while the demand for loanable funds increases.
Child labor limits educational opportunities in developing countries and slows the rate of growth of technological change.
Indicate whether the statement is true or false
According to the hybrid, or consensus, view of aggregate supply, the chance for an aggregate demand increase to cause inflation accelerates as
A. Unemployment increases. B. The economy moves away from full employment. C. The economy moves toward capacity. D. The slope of aggregate supply becomes flatter.
Because it is difficult to negotiate multilateral trade agreements, some economists argue that preferential trade agreements are always beneficial since they represent a movement toward freer trade, which is better than no movement at all. Is this argument always correct?
a. Yes; any movement toward freer trade is better than no movement at all. b. No; some preferential trade agreements may have higher trade diversion costs than trade creation gains. c. Yes; all preferential trade agreements have higher trade creation gains than trade diversion losses. d. No; all preferential trade agreements have higher trade diversion losses than trade creation gains.