A person buys a bond with a face value of $10,000 for $9,195. Each year until the maturity date the bond buyer receives a coupon payment of $450 from the issuer of the bond. The coupon rate on the bond is
A. 4.9 percent.
B. 4.5 percent.
C. 7.0 percent.
D. 6.75 percent.
Answer: B
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An argument in favor of the Federal Reserve adopting inflation targeting is that in the long run, the Fed can have an impact on inflation but not on real GDP
Indicate whether the statement is true or false
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A) F-test. B) autocorrelation test. C) multicollinearity test. D) t-test.
M2 money includes all the following except
a. travelers' checks b. savings accounts c. large denomination time deposits d. money market deposit accounts e. money market mutual accounts