If tax rates in a country increase, ________.
A) the unemployment rate in the country will fall
B) the gross domestic product of the country will decrease
C) the country's expenditure on consumption will increase
D) the aggregate price level of the country will rise
Question 2
A bond that pays a yearly interest rate of 100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond has
A) decreased from 1000 to 500. B) increased from 1000 to 2000.
C) decreased from 2000 to 1000. D) increased from 500 to 2000.
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