The price elasticity of demand for a vertical demand curve is:
a. 0.
b. -1.
c. 1.
d. - infinity.
a
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An expansion
A) follows a peak. B) is defined as a period of negative real GDP growth. C) comes just before a trough. D) is defined as a period of real GDP increases.
Suppose a Treasury bond will mature in 4 years. If the bond pays a coupon of $200 per year and will make a final par value payment of $5,000 at maturity, what is its price if the relevant market interest rate is 3%?
A) $5,185.85 B) $5,304.26 C) $5,743.42 D) $6,011.82
An unexpected change in nominal interest rate changes real interest rate by ____ in the short run
a. a smaller amount b. a larger amount c. the same amount d. an indeterminate percent
By not taking into account the possibility of consumer substitution, the CPI
a. understates the cost of living. b. overstates the cost of living. c. may overstate or understate the cost of living, depending on how quickly prices rise. d. may overstate or understate the cost of living, regardless of how quickly prices rise.