Suppose Matt's New Cars issues and sells a one-year discount bond for $9,259 and repays $10,000 at maturity. The interest rate on this bond would be
A) 2.6%.
B) 7.41%.
C) 8%.
D) 10%.
C
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Total utility will be at its maximum when
A. marginal utility is negative. B. marginal utility is positive. C. marginal utility is maximized. D. marginal utility is zero.
The Economic Recovery Act of 2008 included a temporary increase in the federal deposit insurance ceiling from $100,000 to $250,000. The likely objective was to ________
A) boost bank profitability B) increase the money supply C) discourage withdrawals from banks D) bail out the Federal Deposit Insurance Corporation (FDIC)
A perfectly competitive firm has a random marginal cost with a 30 percent chance of a high marginal cost of $50 and a 70 percent chance of a low marginal cost of $40. What is the firm's expected marginal cost?
A) $48 B) $46 C) $43 D) $45
What are the characteristics of the perfectly competitive market?