Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. For which bond is the yield and the coupon rate the same?

A change in financial technology that reduces the need to hold cash balances ________ the demand for money and ________ the equilibrium nominal interest rate

A) increases; raises B) decreases; lowers C) increases; lowers D) decreases; raises E) decreases; does not change

The welfare loss of a tariff equals that of an import quota that leads to the same level of imports

Indicate whether the statement is true or false