Consider the following three bonds, Bond F, Bond J and Bond P. Bonds F and P mature in 1 year while Bond J matures in 4 years. Bond F and J have a face value of $10,000 while Bond P has a face value of $11,000 . If the interest rate is 15%, rank the three bonds from highest present value to lowest present value
a. Bond F, Bond P, Bond J
b. Bond P, Bond F, Bond J
c. Bond J, Bond F, Bond P
d. Bond P, Bond J, Bond F
e. Bond F, Bond J, Bond P
B
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Refer to Figure 21-5. "Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above
A) A to B B) C to A C) B to A D) B to C
Sarah's demand for routine medical visits is q = 10 - 0.2p when she is healthy and q = 20 - 0.2p when she is sick. Medical visits cost $50 each if Sarah has no medical insurance. She is sick 20% of the time
Sarah is considering two different insurance plans. One offers free medical visits; the other plan costs less up front but requires that Sarah pay $5 per medical visit. Compare the two plans in terms of the trade-off between risk and moral hazard.
If the marginal propensity to consume is 0.55, the simple spending multiplier is 3.65
a. True b. False Indicate whether the statement is true or false
Who among the following is most likely to favor an appreciation of the U.S. dollar?
a. a German professor visiting Chicago b. an American farmer who depends on exports c. an American professor on a tour of Austrian universities d. Disney World in Orlando, Florida, a popular destination for foreign tourists