Examlex
The amount that the price of bond "B" will change if its yield to maturity increases from 7% to 8% is closest to:
MC
An abbreviation commonly used for "Marginal Cost," which refers to the additional cost incurred by producing one more unit of a good or service.
Liability Rule
A legal principle that allocates the economic burden of damages to the party responsible for causing harm.
Coase Theorem
A principle stating that if trade in an externality is possible and there are no transaction costs, parties will negotiate to produce an efficient outcome.
Free-Rider Problem
A situation in which individuals benefit from resources or services without paying for them, leading to underprovision of those goods.
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