Consider the following three bonds, Bond F, Bond J and Bond P. Bonds F and P mature in 1 year while Bond J matures in 2 years. Bond F and J have a face value of $10,000 while Bond P has a face value of $12,000 . If the interest rate is 15%, rank the three bonds from highest present value to lowest present value
a. Bond F, Bond P, Bond J
b. Bond P, Bond F, Bond J
c. Bond J, Bond F, Bond P
d. Bond P, Bond J, Bond F
e. Bond F, Bond J, Bond P
B
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An increase in both the equilibrium price and quantity can be the result of
A) a decrease in demand. B) an increase in supply. C) a decrease in supply. D) an increase in demand. E) None of the above answers is correct.
Which of the following government entities relies most heavily on sales taxes?
A. Local government B. State government C. Federal government D. The Social Security Administration
If a group of sellers that can restrict entry into a market, they will often be able to enlarge their total profit by
a. raising price and reducing output. b. raising price and expanding output. c. lowering price and expanding output. d. raising price and leaving output unchanged.
For a particular good, a 3 percent increase in price causes a 10 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. The relevant time horizon is short. b. The good is a necessity. c. The market for the good is broadly defined. d. There are many close substitutes for this good.