There is an inverse relationship between the price of a bond and its current yield.
Answer the following statement true (T) or false (F)
True
The current yield is one measurement of the rate of return on a bond and is equal to the annual interest payment divided by the bond's price. If the bond price increases, the current yield goes down (the denominator increased). If the bond price decreases, the current yield goes up.
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A firm's marginal cost can always be thought of as the change in total cost if
A) the firm produces one more unit of output. B) the firm buys one more unit of capital. C) the firm's average cost increases by $1. D) the firm moves to the next highest isoquant.
If a product is manufactured under conditions of constant cost, an increase in the demand for the product will increase
a. both equilibrium quantity and equilibrium price in the long run. b. equilibrium price, but equilibrium quantity will be unchanged in the long run. c. equilibrium quantity, but equilibrium price will be unchanged in the long run. d. equilibrium quantity but reduce equilibrium price in the long run.