If the coupon payment on a bond is $500 and the coupon rate is 5%, then what is the face value of the bond?
A. $10,667
B. $10,000
C. $1,000
D. $678.40
E. There is not enough information provided to answer this question.
Answer: B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Suppose that your roommate comes back to the dormitory exclaiming about what a great deal she got on a new shirt that she would have purchased at the regular price for $35, but she bought on sale for $6. An appropriate response would be to
a. make an interpersonal comparison of utility and remark that the shirt is ugly and not worth even $6 to you b. suggest that your roommate is now enjoying $29 of consumer surplus c. suggest that the shirt was on sale because it has a low marginal utility d. suggest that your roommate's total utility from the shirt is 35 utils e. suggest that your roommate's total utility from the shirt is at least $29