A bond that is callable has a chance of being retired earlier than its stated term to maturity. Therefore, if the yield curve is upward sloping, an outstanding callable bond should have a lower yield to maturity than an otherwise identical noncallable bond.
A. True
B. False

false

Explanation: investors of callable bond are compensated with attractive interest, It benefit the issuer. Callable bond are also called redeemable bond, it is a bond that is redeemed or paid off by the issuer prior to date the bond mature.

It is a false statement, that if the yield curve is upward sloping, an outstanding callable bond should have lower yield to maturity than noncallable bond.

statement of owner's equity;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.