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Relationship between the interest rate and the bond price
Note that the higher the issue price, the lower the interest rate. In the same way, when the price of a government bond increases, the interest rate falls and vice versa. The price of a government bond is normally determined by supply and demand which means that you can understand movements in these interest rates by analyzing the market. For example, if the government needs to borrow more money, supply increases, bond prices fall and interest rates increase.
Discuss the three major economic indicators and how they are indicative of our current economic climate.
what role does interst rate play in refernce to output?
Which of the following will cause property crime to increase? a) An increase in jail terms. b) A decrease in personal incomes. c) An increase in the probability of arrest.
MEC and MEI curvs and their role in economics
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