If the coupon-rate of a particular bond increases:
a. the supply of the bond increases.
b. the price of the bond declines.
c. the demand for the bond declines.
d. the supply of the bond decreases.
e. the demand for the bond increases.
e
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On average, in the recessions since 1950, it has taken ________ for real GDP to return to its cyclical peak
A) about 6 months B) about 1 year C) about 18 months D) almost 2.5 years
Refer to Figure 23-1. At point L in the figure above, which of the following is true?
A) Actual inventories are greater than planned inventories. B) The economy has achieved macroeconomic equilibrium. C) Aggregate expenditure is greater than GDP. D) GDP will be increasing.
Suppose that a borrower has a near-perfect credit history before the bank loans him some money. Shortly after the loan has been made, he loses his job and spends money recklessly. This describes the problem known as
A) moral hazard. B) adverse selection. C) risk aversion. D) asymmetric information.
An increase in spending that results from expansionary ________ policy causes the interest rate to ________, everything else held constant
A) fiscal; rise B) fiscal; fall C) incomes; rise D) incomes; fall