What would be the price of a perpetuity bond that has a $100 interest payment and a 4% yield?
a) $1,000
b) $2,000
c) $2,500
d) $4,000
Ans: c) $2,500
You might also like to view...
In the traditional Keynesian model, an increase in government spending leads to all of the following EXCEPT
A) a higher price level. B) an increase in aggregate demand. C) an increase in consumption. D) higher real GDP.
The long-run supply curve of a firm is:
A) its marginal cost curve. B) its average total cost curve. C) the portion of its marginal cost curve that lies above its average total cost curve. D) the portion of its marginal cost curve that lies below its average total cost curve.
If the official unemployment rate increases from February to March because of sluggish sales in the automobile industry, then the increase can be blamed on: a. seasonal unemployment. b. cyclical unemployment
c. structural unemployment. d. frictional unemployment. e. underemployment.
If you transfer all of your currency to your checking account, then initially, M1 will ________ and M2 will ________
A) increase; not change B) not change; increase C) not change; not change D) decrease; increase