What happens when the bond holder sells a bond after a price drop and before earning the full principal?
Answer: Capital loss
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Which of the following transactions would be included in the GDP of the United States?
A. Honda produces cars in Ohio. B. Coca Cola produces soft drinks in England. C. McDonalds sells hamburgers in Russia. D. Ford Motor Company produces cars in Mexico.
As we move downward along a demand curve for apples,
A) consumer well-being decreases. B) the marginal utility of apples decreases. C) the marginal utility of apples increases. D) Both A and B are true. E) Both A and C are true.
Pricing and output determination under an oligopoly is more complicated than pricing and output determinations in other industries. The primary reason for the complication is the:
a. fewness of firms. b. brand loyalty of consumers. c. powerful effect of advertising. d. variability of concentration ratios. e. mutual interdependence of firms.
According to classical macroeconomic theory, changes in the money supply change real GDP but not the price level
a. True b. False Indicate whether the statement is true or false