Suppose you read the following quote in the wall street journal article entitled

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Suppose you read the following quote in the wall street journal article entitled "california (Bond) ratings No longer the lowest rating in the united states. S&P (a bond rating agency)..dropped the states rating to A- from an A, citing a "poor track record" Now suppose you managed a commercial bank that owned illinois state bonds. As in results of the drop in Illinois credit rating, it follows that the price of those bonds would ___ and an the yield of those bonds would___

A. decrease, decrease
B. increase, increases
C. decrease, increase
D. increase, decrease

It is possible for real GDP to decrease during a calendar year, while at the same time nominal GDP increases. Indeed, one would expect this situation to materialize during years in which___

A. A cyclical unemployment is zero
B. there is population growth but no inflation
C. the economy experiences inflation and a recession at the same time
D. the economy experiences deflation

    • 12 years ago
    Suppose you read the following quote in the wall street journal article entitled
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