If Johanna purchases a bond for $4,500 that promises to pay her $5,000 one year later, what is the interest rate on the bond?
a. 5.3 percent
b. 5.6 percent
c. 10.0 percent
d. 11.1 percent
e. 10.5 percent
D
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What role does human capital play in accounting for income inequality?
What will be an ideal response?
Explain the law of one price and the theory of purchasing power parity. Why doesn't purchasing power parity explain all exchange rate movements in the short run? What factors determine long-run exchange rates?
What will be an ideal response?
GDP includes the value of all
a. final goods and services produced within a country using primarily market prices to measure the value of goods and services. b. final goods and services produced within a country using primarily a survey of consumers to measure the value of goods and services. c. goods and services produced within a country using primarily market prices to measure the value of goods and services. d. goods and services produced within a country using primarily a survey of consumers to measure the value of goods and services.
Joe trades an apple to Winston for two oranges. Because the exchange is voluntary, we can conclude that
a. Joe is better off because he gets two things but Winston is worse off because he gives up more items than he receives. b. Winston is better off because he gives more than he receives. c. both Joe and Winston are worse off. d. both Joe and Winston are better off.