If a corporate bond with face value of $8,000 has an interest rate of 4 percent paid once a year for a term of 30 years, what is the size of the coupon payment?
A) $320 B) $2,000 C) $8,000 D) $9,600
A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
If the interest rate falls, other things being equal, investment spending will
A) fall. B) rise. C) either rise, fall, or remain unchanged. D) not be affected.
In the fooling model, what is held constant along a SAS curve?
A) the expected price level B) the nominal wage rate C) the expected price level and the nominal wage rate D) the real wage rate E) the nominal and real wage rates
According to the new classical system, an unanticipated increase in the money stock
a. will shift the aggregate supply schedule only. b. will shift the aggregate demand schedule only. c. will shift both the aggregate demand and aggregate supply schedules. d. None of the above