How are Treasury bond prices affected when the interest rate rises?
A. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must decrease.
B. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must increase.
C. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must decrease.
D. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must increase.
Answer: A
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a. true b. false
Trade restrictions that limit the sale of low-price foreign goods in the U.S. market
a. increase the real income of Americans. b. benefit domestic producers in the protected industries at the expense of consumers and domestic producers in export industries. c. help channel more of our resources into producing goods for which we are a low-cost producer. d. reduce unemployment and increase the productivity of American workers.