Refer to the given information. If the price of this bond falls by $200, the interest rate will:
Answer the question on the basis of the following information for a bond having no expiration
date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest
rate = 10 percent.
A. rise by 2.5 percentage points.
B. rise by 5 percentage points.
C. fall by 2.5 percentage points.
D. fall by 5 percentage points.
A. rise by 2.5 percentage points.
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Government purchases and income taxes have the same effect on the multiplier
a. True b. False Indicate whether the statement is true or false
The expected inflation rate is the
A) same as the actual inflation rate. B) inter-annual, non-energy inflation rate. C) inflation rate that people forecast and use to set the money wage and other money prices. D) rate that people expect the Bureau of Labor Statistics to announce each month, on which bookies take bets. E) inflation rate that the Federal Reserve system announces as the policy goal for the year.
Tariffs on imported coffee will result in all of the following except:
A. Higher prices for imported coffee. B. Higher prices for domestic coffee. C. Gains for workers in the domestic coffee industry. D. Gains for workers in the foreign coffee market.
Which of the following examples would likely have the highest elasticity of demand if the price of the product changed?
a. Jana spends $10,000 of her weekly paycheck of $40,000 on an automobile. b. Roberta spends $400 of her weekly paycheck of $2,000 on a video game player. c. Terence spends $100 of his weekly paycheck of $1,500 on a theater ticket. d. Seo-jun spends $1,500 of his weekly paycheck of $3,000 on a motorcycle.