If Robin has an absolute advantage in both gardening and baking when compared to Robert, then
a. Robin cannot benefit by trading with Robert
b. Robin can benefit by specializing in gardening if Robert specializes in baking
c. Robin can benefit by specializing in baking if Robert specializes in gardening
d. Robin and Robert may benefit from trading, but there is insufficient information to determine who should specialize in what
e. neither Robin nor Robert can benefit from trading with the other
D
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Refer to Figure 26-5. In the figure above, the movement from point A to point B in the money market would be caused by
A) an open market sale of Treasury securities by the Federal Reserve. B) an increase in the price level. C) a decrease in real GDP. D) an increase in the required reserve ratio by the Federal Reserve.
What is the approximate price of a $10,000 coupon bond that pays $1,000 in one year and $1,000 in two years at maturity? The effective yield on the bond is 6 percent
A) $10,000 B) $10,730 C) $10,900 D) $12,000