When is it best to sell bonds?
A) When interest rates are expected to rise, because this means bond prices will rise.
B) When interest rates are expected to fall, because this means bond prices will rise.
C) When interest rates are expected to rise, because this means bond prices will fall.
D) When interest rates are expected to fall, because this means bond prices will fall.
C
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Suppose a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2 . If the bank wishes to hold no excess reserves, its actual reserves will be: a. $4,000
b. $1,200. c. $3,000. d. less than $1,000. e. $4,800.
Darlene runs a fruit and vegetable stand in a medium-sized community where there are many such stands. Her weekly total revenue equals $2,000 . Her weekly total cost of running the stand equals $3,500, consisting of $2,500 of variable costs and $1,000 of fixed costs. An economist would likely advise Darlene to: a. shut down as quickly as possible in order to minimize her losses
b. keep the stand open because it is generating an economic profit. c. keep the stand open for a while longer because she is covering all of her variable costs and some of her fixed costs. d. keep the stand open for a while longer because she is covering all of her fixed costs and some of her variable costs.
Half of American recessions since the early 1950s have been caused at least in part by rapid increases in oil prices
a. True b. False
A series of ascending indifference curves is called
a. a demand curve b. a budget constraint c. an indifference map d. marginal-utility-to-price ratio curves e. consumer surplus