Suppose a one-year discount bond offers to pay $1000 in one year and currently sells for $950. Given this information, we know that the interest rate on the bond is
A) 5.3%.
B) 9.5%.
C) 10%.
D) 90%.
E) 110%.
A
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While many analysts defended the actions taken by the Fed and the Treasury to respond to the financial crisis in 2008, others were critical of these actions. The critics were concerned that by not allowing large firms to fail
A) stockholders and bondholders of these firms were not allowed to receive the proceeds from the sale of assets that would have occurred if the firms had declared bankruptcy. B) there is an increased likelihood that other firms will engage in risky behavior in the future with the expectation that they will also not be allowed to fail. C) there will be less competition in the U.S. economy, which could led to higher prices for consumers. D) smaller firms will resent not receiving similar assistance.
The exchange rate is a key price that affects international trade flows of goods and services and international financial flows.
Answer the following statement true (T) or false (F)
A perfectly competitive market is one where:
A. each firm controls the price charged for its product by changing the quantity they produce. B. each firm sells at the government mandated price. C. each firm within the market must sell its good at the market price. D. a firm can affect market price by increasing output.
To determine the total demand for all consumers, sum the quantity each consumer demands
A) at a given price. B) at all prices and then sum this amount across all consumers. C) Both A and B will generate the same total demand. D) None of the above.