Which Statement Is False

question 12

Multiple Choice

Which statement is false?

• A)In the market period,industry supply is either perfectly inelastic or very inelastic.
• B)In the short run,an increase in demand cannot lead to an increase in a firm's output.
• C)If an increase in demand is considered to be long lasting,new firms will tend to enter the industry.
• D)Supply is most elastic in the long run.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, factoring in its current market price, par value, interest payments, and time to maturity.

Annual Coupon

The yearly interest paid to bondholders, typically expressed as a percentage of the bond's face value.

Market Yield

The annual income returned on an investment divided by its current market price.

Interest Rate Risk

The potential for loss due to a change in interest rates affecting investment values or borrowing costs.