A one-year discount bond with a face value of $1000 has an interest rate of 4%. What is its price?

Suppose present interest rates are relatively high. Financial investors will hold

A) smaller speculative balances because they expect bond prices to fall further. B) larger speculative balances because they expect bond prices to fall further. C) smaller speculative balances because they do not expect bond prices to fall further. D) larger speculative balances because they do not expect bond prices to fall further.

In which of the following countries are taxes (measured as a percentage of GDP) the lowest?

a. Canada. b. France. c. Sweden. d. The United States.