A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond has
A) decreased from $1000 to $500.
B) increased from $1000 to $2000.
C) decreased from $2000 to $1000.
D) increased from $500 to $2000.
B
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An increase in the excess reserves banks want to hold, together with people depositing currency into their demand deposit accounts, would: a. increase the money supply
b. decrease the money supply. c. leave the money supply unchanged. d. have an indeterminate effect on the money supply.
Mankiw argues that a primary difference between taxing products like gasoline and taxing soda and other sugary drinks is that
a. consumption of gasoline causes negative externalities on society while consumption of soda affects the consumer. b. the government can generate significant revenue from the gas tax but not from a soda tax. c. gasoline has inelastic demand but soda has elastic demand. d. Both a and c are correct.
The difference between the total amount that producers would have been willing to accept for the total quantity produced in a market and what they actually received at the market clearing price is called
A) production excess. B) excess demand. C) market surplus. D) producer surplus.
The aggregate demand curve would shift to the right if
A. the money supply were decreased. B. net taxes were decreased. C. the cost of energy were to increase. D. government spending were decreased.