A Treasury bill with an original maturity of six months currently sells for $972.58. The bill was issued 30 days ago. An investor who purchases this bill today would have a bond equivalent yield of __________ percent
A) 6.49
B) 6.77
C) 5.58
D) 5.65
B
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Discouraged workers are
A) those who have given up looking for work, even though they would like to be employed. B) those who quit working because they are dissatisfied with their jobs. C) those unmotivated workers who bring down a country's productivity. D) those who would like to find a second job to supplement their income, but have not yet found one.
Automatic stabilizers are fiscal policy measures that
A) must be determined by the Congress in each budget. B) do not require new legislation. C) are determined by the Federal Reserve System. D) are part of discretionary fiscal policy.
A recessionary gap and an inflationary gap will not persist when the equilibrium level of GDP
A. everyone who wants a job has one and firms are not looking for extra workers. B. frictional unemployment is 0. C. equals potential output. D. the unemployment rate is 0.
Suppose a monopoly sells to two identifiably different types of customers, A and B, who are unable to practice arbitrage. The inverse demand curve for group A is PA = 10 - QA, and the inverse demand curve for group B is PB = 18 - QB. The monopolist is able to produce the good for either type of customer at a constant marginal cost of 2, and the monopolist has no fixed costs. If the monopolist is
able to practice group price discrimination, the values of the elasticities of the two groups at the profit-maximizing prices are A) ?A = -1.25, and ?B = -1.5. B) ?A = -1.5, and ?B = -1.25. C) ?A = -0.67, and ?B = -0.8. D) ?A = -0.8, and ?B = -0.67.