If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$75 / (1 + .04)6] + [$2,500 / (1 + .04)6]," which of the following is correct?
A) The face value is $2,500, the interest rate you need is 6 percent, and the coupon will mature in 4 years.
B) The face value is $2,500, the coupon is $75, and the coupon will mature in 4 years.
C) The coupon is $75, the interest rate you need is 4 percent, and the coupon will mature in 6 years.
D) The face value is $75, the interest rate you need is 1.04 percent, and the coupon will mature in 6 years.
C
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When the Fed buys $10 million in T-bills, interest rates will ________ because the LM curve shifts ________
A) fall; left due to the increase in the demand for money and loans B) rise; right due to the increase in the supply of money and loans C) fall; right due to the increase in the supply of money and loans D) rise; left due to the increase in the supply of money and loans
Total variable costs: a. Increase when quantity produced increases
b. Decrease when quantity produced increases. c. Sometime increase and sometime decrease when quantity produced increases. d. Can sometimes be constant over a substantial range of output.
Which of the following is not a function of prices in a market system?
a. Prices have the crucial job of balancing supply and demand. b. Prices send signals to buyers and sellers to help them make rational economic decisions. c. Prices coordinate economic activity. d. Prices ensure an equitable distribution of goods and services among consumers.
Amendments in the mid-1960s to the Social Security Act created:
a. major medical insurance. b. managed care. c. tax exemptions for health insurance as an employee benefit. d. Medicare and Medicaid. e. Blue Cross and Blue Shield.