A Decrease in Both Equilibrium Price and Quantity Could Be

question 167

Multiple Choice

A decrease in both equilibrium price and quantity could be produced by a(n)

• A) decrease in supply,with demand constant
• B) increase in supply,with demand constant
• C) decrease in demand,with supply constant
• D) increase in demand,with supply constant
• E) improvement in technology

Comprehend how coupon rates are determined and their relation to market interest rates at the time of bond issuance.

Identify the impact of current interest rates on the selling price of bonds.

Understand the concepts of discount, par, and premium selling conditions of bonds.

Grasp the concept of maturity risk and its influence on bond prices.

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Definitions:

Multiplier

A factor that quantifies how an increase in spending leads to an increase in national income and output, typically greater than the initial amount spent.

Balanced Budget

When federal tax receipts equal federal government spending.

Constitutional Amendment

A formal change or addition proposed and ratified according to the procedures specified in a constitution, altering the document's framework or principles.

Recessionary Gap

The difference between the actual output of an economy and its potential output if all resources were employed at their maximum efficiency during a recession.