The income of consumers increases. and the wage rate in the seafood industry increases. As a result
A) the price of seafood stays the same and the quantity sold can either increase or decrease, depending on whether the change in demand is greater than the change in supply.
B) the price of seafood increases and the quantity sold can either increase, decrease or stay the same depending on whether the change in demand was greater than the change in supply.
C) the equilibrium quantity sold increases and price can either increase or decrease, depending on whether the change in demand is greater than the change in supply.
D) the equilibrium quantity sold can either increase or decrease and the price can either increase or decrease, depending on whether the change in demand was greater than the change in supply.
Answer: B
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A corporation is liable to pay to bondholders the
a. current interest rate in the bond market. b. current yield on the particular bond. c. coupon rate on the bond. d. yield on the bond at maturity.
In the recent financial and economic crises, the economy fell into a so-called liquidity trap, which means that:
A. Banks did not have enough reserves to continue lending to banks B. The Fed injected reserves into the banking system, but the interest rates remained high C. Firms did not want to borrow from banks because they had little need for extra liquidity D. Banks held on to excess reserves and people chose to pay off loans rather than spend