When the price level rises, the long-run aggregate supply curve ________

How much is a bond that pays $80 in coupon payments for 4 years and $1,000 at the end of the fourth year worth if the interest rate is 6%?

A) $855.46 B) $1,045.56 C) $1,069.30 D) $1,140.00

Why do corporations want to keep the price of their stock high?

A) A higher stock price increases the funds the firm can raise when it sells a given amount of stock. B) Corporations can pay their managers lower salaries and avoid principal-agent problems when stock prices are higher. C) Higher stock prices are correlated with lower expected profitability. D) All of the above provide incentive for corporations to keep the price of their stock high.