The fact that the supply curve for a given firm's bond is vertical reflects the fact that
a. at any given point in time there are a fixed number of those bonds in existence.
b. firms adjust the number of bonds they issue on a daily basis
c. investors do not adjust their portfolios when interest rates change
d. government limits the amount of bonds a company can issue
A
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Higher interest rates:
a) increase consumption and investment spending. b) decrease consumption and increase investment spending. c) decrease consumption and investment spending. d) increase consumption and decrease investment spending.
One reason that monopolies often earn zero economic profits is that
a. many monopolies are regulated by the government b. competitors cut prices c. barriers to entry are low d. collusion prevents profits e. costly concessions to labor suppliers reduce economic profit