Suppose you have two investments to choose from:
1, A one-year $20,000 zero coupon bond
2, A two-year $20,000 zero coupon bond
What is the difference between the prices of these bonds if the interest rate rises from 4% to 5%?
A) You would lose $167.39 more on the two year bond.
B) You would lose $167.39 more on the one year bond.
C) You would gain $350.54 more on the two year bond.
D) You would lose $183.15 more on the one year bond.
A
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In a world of certainty about future demand and supply, speculators cause price fluctuations across time to decrease.
Answer the following statement true (T) or false (F)
In a duopoly with a collusive agreement and in a one-time only game, a firm's profit is largest if it ________ the agreement and if the other firm ________ the agreement
A) complies with; complies with B) complies with; cheats on C) cheats on; complies with D) cheats on; cheats on
Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q2 to Q1, the decrease in total surplus of the market is represented by:
A. area FGI. B. area GHI. C. area FHI. D. area BDFH - area FHI.
For supply-side inflation to occur in the long run
A. the long-run aggregate supply curve has to shift to the left. B. the aggregate demand curve has to shift to the left. C. the long-run aggregate supply curve has to shift to the right. D. the aggregate demand curve has to shift to the right.