You have a bond that pays $125 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) Coupon payments on newly-issued bonds rise to $140 per year.
B) The likelihood that the firm issuing your bond will default on debt increases.
C) Coupon payments on newly-issued bonds fall to $75 per year.
D) The price of a share of stock in the company falls.
C
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Using the interest rate as a measure of the opportunity cost of holding money, the demand for money curve
A) slopes upward with respect to the rate of interest. B) is not affected by the price level. C) slopes downward with respect to the rate of interest. D) is vertical.
In the long run in perfectly competitive markets, individual firms will operate at very different output levels
a. True. b. False.
List appropriate criteria for deciding whether a merger of two firms producing similar products should be permitted
According to the textbook author, who is most likely to do well as a result of the information revolution?
A. Manufacturing workers B. Authors of textbooks C. College graduates in general D. Designers of algorithms