A discount bond involves
A) interest payments from the borrower to the lender periodically during the life of the loan.
B) payment by the borrower to the lender of the face value of the loan at maturity.
C) no payment of principal by the borrower to the lender.
D) payment of interest by the borrower to the lender every six months during the life of the loan.
B
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A firm's marginal cost is $82, its average total cost is $50, and its output is 800 units. Its total cost of producing 801 units is
A) less than $40,000. B) between $40,000 and $40,050. C) between $40,050 and $40,080. D) greater than $40,080.
A decline in the money ________ shifts the LM curve to the ________, causing the interest rate to rise and output to fall, everything else held constant
A) demand; right B) demand; left C) supply; right D) supply; left
If a bond has a face value of $1,000 and the bondholder receives coupon payments of $27.50 semi-annually, the bond's coupon rate is:
A. 27.5% B. a value that cannot be determined from the information provided. C. 2.75% D. 5.50%
In the long run, all of the following are true for a monopolist EXCEPT
A. MR = MC. B. P = MC. C. P > AVC. D. P > ATC.