Which of the following will increase the yield on a bond?
a. a reduction principal
b. an increased risk of default
c. an increase in the bond's price
d. a reduced risk of default
e. none of the above
B
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(Consider This) Brinley is the hottest new pop singer, but his agent discovers that Internet sales of Brinley's music have been poor due to Internet piracy, but concerts are regularly sold out and merchandise (such as T-shirts) sells well. If Brinley
wants to enhance profits, economists would most likely recommend that he: A. charge more for downloads, concerts, and merchandise. B. cut prices for downloads, concerts, and merchandise. C. only give concerts. D. keep prices of downloads low and raise prices for concerts and merchandise.
Under certain assumptions, the actions of elected officials mimic the wishes of the median voter.
A. True B. False C. Uncertain