Homework Answers
(a)
Bond price and interest rate are inversely related. So, lower interest rate will increase bond price.
(b)
Higher revenue announcement will increase investor confidence, thus increasing demand for bonds. The bond demand curve will shift rightward, increasing bond price.
(c)
Lower profit by firm will decrease investor confidence, thus decreasing demand for bonds. The bond demand curve will shift leftward, decreasing bond price.
(d)
If investors believe in the claim of zero impact on future profits, investor confidence will not change, so bond demand and bond price will not change.
If investors do not believe in the claim of zero impact on future profits, it will decrease investor confidence, thus decreasing demand for bonds. The bond demand curve will shift leftward, decreasing bond price.
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macroeconomic please solve it all i need help 8. If the price of coffee decreases, all...
macroeconomic
please solve it all
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QUESTION 10 Consider the monthly data, including the estimates for March 2020, and the information in...
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Consider the monthly data, including the estimates for March
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is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
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b.
Shortages...
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please solve it all
i need help
8. If the price of coffee decreases, all else held coestant, the Law of Demand states that a firms will produce more coffee b. people will buy more coffee 9. If the price of coffee decreases, all else held constant, the Law of Supply states that a firms will produce more coffee b. people will buy more coffee e. firms will produce less coffee d people will buy more milk shakes c....
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Consider the monthly data, including the estimates for March
2020, and the information in the articles. Which of the following
is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
increased money demand. Lenders are increasing their lending to
keep up with the needs of households and businesses. Money demand
is increasing more than money supply.
b.
Shortages...
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