If the Federal Reserve unexpectedly raised its interest rate target, which of the following would most likely occur?
a. The interest rate would increase and bond prices would rise.
b. The interest rate would decrease and bond prices would rise.
c. The interest rate would increase and bond prices would fall.
d. The interest rate would decrease and bond prices would fall.
e. The interest rate would increase but bond prices would not change.
C
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A flat tax plan with a standard deduction of $25,000 in income and a tax rate of 20% would require an individual earning $100,000 to pay $15,000 in income taxes
a. True b. False Indicate whether the statement is true or false
Which of the following will control incentive problems in a corporation?
A. Managers and employees adopting higher and stringent ethical standards B. Managers and employees adopting predefined ethical standards C. Managers forcing employees to adopt higher and stringent ethical standards D. Managers checking on their employees email and other activities closely