When interest rates in the bond market go up
A) the price of existing bonds goes u
C
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If a firm increases its prices when the demand is inelastic, then the firm will see
A. an increase in revenues. B. a decrease in revenues. C. no change in revenues. D. no effect on the sales of its product.
To identify the burden of a per-unit tax on consumers, we have to use the aggregate marginal willingness to pay curve whenever the underlying good is not quasilinear.
Answer the following statement true (T) or false (F)
According to the supply-side economists, a cut in the marginal income tax rate would cause
a. labor supply to rise, output to rise, and the price level to fall. b. labor supply to rise, the price level to rise, and output to fall. c. labor supply to fall, the price level to rise, with output unchanged. d. labor supply to rise, the price level to fall, with output unchanged.
After watching a movie, Alan chooses not to watch a second and goes for a walk instead. Economists could explain his choices using the concept of:
A. budget constraints. B. diminishing marginal utility. C. income effect. D. substitution effect.