If a bond pays the same coupon payment forever without a maturity, it is known as a
A) perpetuity.
B) forever bond.
C) discount bond.
D) consolidated bond.
A
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A demand curve shows how quantity demanded changes as the price changes. It implies that
a. only a change in price can shift a demand curve b. everything else that affects demand is assumed to be constant c. quantity demanded is unrelated to price d. economists are concerned only with money e. it is impossible to show how anything but price affects demand
One kind of gain from specialization is that
a. most individuals gain at the expense of someone else b. people develop expertise c. people get to do only what they like d. people cannot be bossed around e. people gain political power
Utility is maximized for the consumption of two goods when: a. the price of the first good equals the price of the second good
b. the marginal utility per dollar spent is equal for both goods consumed. c. the quantity consumed of the first good equals the quantity consumed of the second good. d. the total utility of the first good equals the total utility of the second good.
If the rate of inflation is 5 percent and the real interest rate is 3 percent, the nominal interest rate should be
A. 2 percent. B. 4 percent. C. 8 percent. D. -2 percent.