Which of the following is true with regard to bonds?
A) As the price of a bond falls, the interest rates rises.
B) As the price of a bond rises, the interest rates rises.
C) As the price of a bond falls, the interest rates remains unchanged. D) As the price of a bond falls, the interest rates falls.
Ans: A) As the price of a bond falls, the interest rates rises.
You might also like to view...
When a firm raises the price of its product, what happens to its total revenue?
A) If demand is elastic, total revenue decreases. B) If demand is unit elastic, total revenue increases. C) If demand is inelastic, total revenue decreases. D) If demand is elastic, total revenue increases. E) If demand is unit elastic, total revenue decreases.
At a point on a production possibilities curve, opportunity cost of more capital goods today is
A) fewer capital goods in the future. B) fewer consumer goods in the future. C) fewer consumer goods today. D) more unemployed resources in the future.