You are thinking of buying a newly issued, 5-year bond that has a face value of $10,000 and offers no annual coupon payments. What is the most you should pay for this bond, if the interest rate is 5 percent (0.05) per year?
a. $5,000.00
b. $6,139.13
c. $7,835.26
d. $10,000.00
e. $43,294.77
C
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When crowding out occurs, it ________ the effectiveness of ________ fiscal policy.
A. increases; expansionary B. reduces; contractionary C. reduces; expansionary D. increases; contractionary
Output per capita is the most commonly used measure of the prosperity of a nation
a. True b. False
Which of the following measures the performance of smaller stocks in the United States?
a. S&P 500 b. NASDAQ Composite c. Wilshire 5000 d. Russell 2000 e. Goldman Sachs Indices
Related to the Economics in Practice on p. 455: If a retiree's pension is tied to the CPI, her monthly pension check would tend to grow ________ if the pension is tied to the ________ CPI.
A. slower; chain-linked B. slower; fixed-weight C. faster; chain-linked D. The check would grow at the same rate regardless of the type of CPI to which it is tied.