A coupon bond is a bond that:
A. pays the owner the sum of the coupons at the bond's maturity.
B. always sells at a price that is less than the face value.
C. provides the owner with regular payments.
D. pays a variable coupon rate depending on the bond's price.
Answer: C
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If the real interest rate increases
A. there will be a movement upward along the investment demand curve. B. the investment demand curve will shift to the left. C. the investment demand curve will shift to the right. D. there will be a movement downward along the investment demand curve.
What particular characteristic do public goods and common resources have in common?
Which of the following is NOT an example of ways in which microeconomic analysis can help Toyota Motor Corporation in its corporate decision making?
A.Forecasting demand for new automobiles B. Determining how many automobiles to produce in order to maximize profits C. Forecasting the effect of an oil price increase on demand for hybrid autos D. Predicting how competitors will react to the firm's pricing strategy E. Forecasting the effect of Toyota's hiring patterns on the U.S. unemployment rate
The Fed's strategy of increasing the money supply and lowering interest rates in order to increase real GDP is called
A. Contractionary fiscal policy B. Expansionary monetary policy C. Expansionary fiscal policy