A bond that pays no annual interest (or coupons) and has a face value at maturity will fetch a price today that is equal to the:
A. Future value of its face value
B. Number of years in the life of the bond times its face value
C. Present value of the number of years in the life of the bond times its face value
D. Present value of its face value
D. Present value of its face value
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Gross domestic product understates the total production of final goods and services because of the omission of
A) intermediate goods. B) exports. C) inflation. D) the underground economy.
In the market for euros, the supply of euros (€) is
A) downward sloping, because lower dollar prices of euros mean that U.S. goods are cheaper to Europeans. B) downward sloping, because higher dollar prices of euros mean that U.S. goods are cheaper to Europeans. C) upward sloping, because higher dollar prices of euros means that U.S. goods are cheaper to Europeans. D) upward sloping, because lower dollar prices of euros means that U.S. goods are cheaper to Europeans.
If disposable income increases by $400 billion and consumption increases by $300 billion, the MPC equals
A. 0.75. B. 0.60. C. 0.80. D. 0.68.
Imports tend to fall whenever a nation's currency appreciates because foreign products become more expensive to domestic consumers
Indicate whether the statement is true or false