A recent purchaser of a bond that agrees to pay an annual nominal amount would hope that interest rates do not rise
Indicate whether the statement is true or false
True , for two reasons. First, the person is locked into a lower interest rate. Second, if the person needs to sell the bond, he will incur a loss since at higher inteest rates, bond prices fall.
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The existence of externalities is due mainly to the fact that
A) monopolies tend to produce too little of a good anyway. B) the optimal level of pollution is zero. C) pollution is not a serious problem. D) property rights are poorly defined.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.