Your aunt gives you a PepsiCo bond with face value of $5,000 . It will mature in two years. Currently, the interest rate is 10 percent (0.10) per year. How will the value of the bond change if the interest rate falls to 5 percent tomorrow morning?
a. It will rise by $413.22.
b. It will rise by $402.90.
c. It will rise by $432.90.
d. It will fall by $432.90.
e. It will fall by $402.92.
B
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During the 1960s, the inflation rate and the unemployment rate were inversely related
a. True b. False Indicate whether the statement is true or false
The SRAS curve is ____ with real output levels that ____
a. upward sloping; vary positively with the price level b. upward sloping; vary negatively with the price level c. vertical; are equal to the natural level of real output at all price levels d. vertical; can be either greater than or less than the natural level of real output
The amount of goods and services that a person can produce in a given time is called
a. labor input b. labor intensive c. labor output d. labor productivity
A profit-maximizing perfect competitor will ___________ operate at that output at which MC = MR.
A. always B. usually C. sometimes D. rarely