Assess the impact on the bond market of the rise in Internet trading of stocks
What will be an ideal response?
The liquidity of the stock market has been increased by Internet trading of stocks. This increase in the desirability of stocks, all else being equal, results in a shift to the left in the demand curve for bonds, lowering the price and raising the interest rate.
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An increase in the price of pork will lead to
A) a movement up along the demand curve. B) a movement down along the demand curve. C) a rightward shift of the demand curve. D) a leftward shift of the demand curve.
Exhibit 2-2 Production possibilities curve
In Exhibit 2-2, the opportunity cost of coffee when moving from A to B is:
A. the same as moving from A to C. B. the same as moving from A to D. C. the same as moving from B to D. D. the same as moving from B to C.