Multiple Choice
If you buy a bond which pays 5 percent and subsequently the interest rate rises to 6 percent, then it is true that
A) the price of the bond is still $1,000.
B) the interest payment on the bond will fall.
C) the price of the bond will rise.
D) the price of the bond will fall.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: During the Great Depression, the Fed followed
Q9: Which of the following is FALSE?<br>A) Some
Q10: A contractionary monetary policy<br>A) is brought about
Q11: Which of the following is FALSE?<br>A) The
Q12: How would the Federal Reserve pursue an
Q14: According to the Keynesians, expansionary monetary policy
Q15: If the Fed follows a monetary rule,
Q16: Keynesian economists believe that monetary policy works
Q17: Keynesian theory argues that<br>A) increases in the
Q18: Suppose the economy is currently in equilibrium.