A bond with no expiration date has a face value of $10,000 and pays a fixed 10 percent interest. If the market price of the bond rises to $11,000, the annual yield approximately equals:
A. 11 percent
B. 10 percent
C. 9 percent
D. 8 percent
C. 9 percent
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Financial firms whose loans are often $100 or less operate in ________
A) the microcredit market B) the hedge fund industry C) the macrofinance market D) the credit union sector
Which of the following is false? a. Policy makers generally get the timing of countercyclical macroeconomic policy correct
b. To know the appropriate countercyclical policy to adopt, policy makers would need to know the natural rate of real output. c. If policy makers underestimate the multiplier, they may overshoot their goal for stimulus policies. d. All of the above are true
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
An economic theory is also known as an economic
A) model. B) prediction. C) conclusion. D) assumption.