What is the value of a newly issued 3-year bond with a face value of $5,000 and no coupon payments? Assume the interest rate is 8 percent (0.08) per year
a. $4,629.63
b. $5,000.00
c. $3,969.16
d. $3,756.57
e. $4,545.45
C
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Refer to the figure above. If a price control is imposed at $8, what is the loss in producer surplus?
A) $30 B) $60 C) $90 D) $120
If the financial innovations such as ATM machines make money demand less elastic than it was before, then
a. the LM curve will become steeper. b. the LM curve will become flatter. c. both the IS and LM curves will become flatter. d. the LM curve will shift to the left.
Workers in industrial countries earn much higher wages than workers in developing countries because:
a. the industrial countries are labor rich and capital poor economies. b. the industrial countries lack a steady supply of unskilled laborers. c. the industrial countries produce labor intensive goods. d. the marginal productivity of labor is low in the industrial economies. e. the marginal productivity of labor is high in the industrial economies.
Closed shops are shops that are closed to union members
Indicate whether the statement is true or false