Homework Answers
If riskiness of bond relative to other asset decreases, the
demand for bond increases. The demand curve will shift rightward
from D0 to D1. Increase in demand for bond raises the price from p0
to p1. When riskiness of bond decreases, people invest more in
bonds rather than on other assets.
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3. Other things being equal, what will happen to bond prices if riskiness of bond relative...
3) The law of demand includes the statement other things being equal." These other things include...
3) The law of demand includes the statement other things being equal." These other things include all of the following EXCEPT A) the price of related goods. B) incomes. tastes D) the price of the good itself. 3) John believes that when the price of a good increases people will purchase more of the good. This statement is A) consistent with the law of supply. B) consistent with the law of demand. referring to money prices. D) inconsistent with the...
Other things being equal, what happens to the current price of a bond if the bond...
Other things being equal, what happens to the current price of a bond if the bond has a larger par value? Decrease. Increase. No change. Cannot be determined without knowing the market interest rate.
Question 1 Other things remain unchanged, the market demand curve for a particular...
Question 1 Other things remain unchanged, the market demand curve for a particular expected to shift leftwards when the price of that product declines. . True False Question 2 Other things remain equal, which of the following factors causes the market supply curve of Blue-ray players to shift leftwards? The costs of producing a single Blue-ray player increases. The number of firms selling Blue-ray players increases. The sellers are expecting the price of Blue-ray players to decline in the soon future. Non of the above factors causes the...
Other things remain unchanged, the market demand curve for a particular product is expected to shift leftwards when the price of that product declines.
Other things remain unchanged, the market demand curve for a particular product is expected to shift leftwards when the price of that product declines.Question 1 options:TrueFalseQuestion 2Other things remain equal, which of the following factors causes the market supply curve of Blue-ray players to shift leftwards?Question 2 options:The costs of producing a single Blue-ray player increases.The number of firms selling Blue-ray players increases.The sellers are expecting the price of Blue-ray players to decline in the soon future.Non of the above...
What would happen (other things being equal) to a confidence interval if you calculated a 99%...
What would happen (other things being equal) to a confidence interval if you calculated a 99% confidence interval rather than a 95% confidence interval? Question 11 options: It will not change. It will be wider. It will be narrower.
What will happen to equilibrium prices if both demand and supply change in opposite directions in...
What will happen to equilibrium prices if both demand and supply change in opposite directions in a market simultaneously by the same proportions at all price/quantity combinations? You are not required to respond to your peers.
All other things being equal, the price and yield on a bond are a. positively related...
All other things being equal, the price and yield on a bond are a. positively related b. negatively related c. sometimes positively and sometimes negatively related d. not related e. indefinitely related
All other things being equal, the __________ substitutes for a good, the __________ the price elasticity...
All other things being equal, the __________ substitutes for a good, the __________ the price elasticity of demand.
1. Suppose the U.S economy enters a recession and incomes fall. What will happen to the...
1. Suppose the U.S economy enters a recession and incomes fall. What will happen to the equilibrium prices and quantities of inferior goods? If price stays the same would that be equilibrium? Why or why not? What will eventually happen in th3 market? What happened to equilibrium price and quantity? Which quantity is affected and how do you know? Would your answer be the same if you were discussing normal goods? Explain using supply/demand graphs. 2. Draw a graph showing...
Question 8 (10 points) When other things remain equal, buyers are expected to stock up from...
Question 8 (10 points) When other things remain equal, buyers are expected to stock up from the normal product that they expect its market price to decline significantly in the soon future. Question 8 options: True False Question 9 (10 points) Saved Other things being equal, a shortage from soda is expected if both buyers and sellers believed the forecast that predicted a significant decline in the market price of soda. Question 9 options: True False Question 10 (10 points)...
3) The law of demand includes the statement other things being equal." These other things include all of the following EXCEPT A) the price of related goods. B) incomes. tastes D) the price of the good itself. 3) John believes that when the price of a good increases people will purchase more of the good. This statement is A) consistent with the law of supply. B) consistent with the law of demand. referring to money prices. D) inconsistent with the...
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