When the price of a bond rises, the interest rate paid on the bond also rises.
a. true
b. false
Ans: b. false
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According to mainstream macroeconomists, U.S. macro instability has resulted from
A. adherence by the Fed to a monetary rule. B. wide fluctuations in net exports. C. changes in investment spending. D. government's attempts to balance its budget.
If the government wished to shift aggregate demand to the left, it might:
A. decrease military spending. B. increase the amount of educational grants available. C. decrease corporate income taxes. D. All of these would cause a decrease in aggregate demand.
In 1997–1998, which one of the following countries experienced a sharp depreciation of its currency?
a. Argentina b. Brazil c. Thailand d. Italy
When supply changes there is a ____, and when the price changes there is a ____.
A. movement along the supply curve; shift in the supply curve B. shift in the supply curve; shift in the supply curve C. shift in the supply curve; movement along the supply curve D. movement in the quantity supplied; shift in selling plans E. change in the quantity supplied; change in supply