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