Suppose a bond sells for $2,000 and pays $200 per year in interest. What will happen to the current interest rate if the price of the bond changes to $1,800?
a. It decreases by 10 percentage points.
b. It increases by 10 percentage points.
c. It remains unchanged.
d. It increases by 1 percentage point.
e. It decreases by 1 percentage point.
d
Economics
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A basic assumption used in many economic models is:
A) as price goes up, the amount purchased will go up too. B) as price goes up, less will be offered for sale on the market. C) if the underlying theory doesn't represent reality, it is not useful. D) ceteris paribus, which means all other things remain unchanged.
Economics
Identify which of the following motivated European expansion in America
(a) International trade and finance opportunities (b) Precious metals such as gold and silver (c) The hope of finding a northwest passage to the Orient (d) All of the above
Economics