You have a bond that pays $125 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) Coupon payments on newly-issued bonds rise to $140 per year.
B) The likelihood that the firm issuing your bond will default on debt increases.
C) Coupon payments on newly-issued bonds fall to $75 per year.
D) The price of a share of stock in the company falls.
C
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Ignoring any supply-side effects, if government expenditure on goods and services decreases by $10 billion and taxes decrease by $10 billion, then real GDP ________ and the price level ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls E) does not change; does not change
Who are the "working poor"?
(A) Those who suffer from chronic health problems. (B) Those who cannot work because they are disabled. (C) Those who have jobs but do not earn enough. (D) Those who cannot work because they have small children.