How is the interest rate on a bond calculated?
What will be an ideal response?
The interest rate, or coupon rate, on a bond is calculated by dividing the coupon by the face value of the bond.
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Which of the following is NOT true of a demand curve?
A. It reflects sellers' reservations prices. B. It shows the amount consumers want to buy at various prices. C. It has negative slope. D. It relates the price of an item to the quantity demanded of that item.
A stockholder ________ an owner of the firm, and a bondholder ________ an owner of the firm
A) might be; is not B) is; is not C) is not; is D) is not; is not E) is; is
If the government purchases multiplier equals 2, and real GDP is $14 trillion with potential real GDP $14.5 trillion, then government purchases would need to increase by ________ to restore the economy to potential real GDP
A) $7.25 trillion B) $1 trillion C) $500 billion D) $250 billion
The median voter theorem states that the outcome of a majority vote is likely to represent the preferences of the voter who is in the political middle
Indicate whether the statement is true or false