You have two bonds, both with a face value of $7,000 . One of them matures one year from today, while the other matures one year after that. If the interest rate is 8 percent (0.08) per year, what is the difference in value between the two bonds?
a. $480.11
b. $578.52
c. $317.46
d. zero
e. $925.92
A
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An increase in the price level will: a. increase the quantity of RGDP supplied, but not increase short-run aggregate supply. b. decrease the quantity of RGDP supplied, but not decrease short-run aggregate supply. c. increase short-run aggregate supply
d. decrease short-run aggregate supply.
A banking panic occurs when
a. many banks fail simultaneously b. banks do not earn enough profit c. a bank exhausts all of its vault cash d. individuals cannot withdraw money from a bank e. bank officials fear they have made too many bad loans
An increase in the quantity of tea demanded occurs if:
A. the price of coffee rises. B. the price of the tea falls. C. the income of tea drinkers increases. D. the population of tea drinkers grows.
A sudden change in the normal behavior of inflation, unrelated to the nation's output gap, is called:
A. inflation inertia. B. long-run equilibrium. C. an inflation shock. D. short-run equilibrium.