Which of the following is a characteristic of a bond?
A) A bond represents a promise to repay a fixed amount of funds.
B) The face value or principal plus interest is repaid at a specified period of time.
C) The length of coupon payments is fixed by the stated maturity period.
D) All of these are characteristics of bonds.
Answer: D
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If aggregate spending in an economy can be written as Y = 15,000 + 0.6Y - 20,000r, and potential output equals 34,000, what real interest rate must the Federal Reserve set to bring the economy to full employment?
A. 5 percent B. 7 percent C. 3 percent D. 6 percent
Which of the following is a problem that arises in a health insurance market?
A) There are a large number of buyers of various insurance programs. B) There exists a fierce competition between the insurance providers. C) A disproportionate number of high-risk individuals are attracted to buy insurance. D) Only risk-averse individuals buy insurance.
All of the following are examples of financial securities except
A) checking accounts. B) corporate bonds. C) shares of stock. D) Treasury bonds.
Why do some firms price discriminate? Relate your answer to the common practice of public colleges charging lower tuition to in-state students and higher tuition to out-of-state students
What will be an ideal response?