Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After some negotiation, Mister Smith purchased the house for $205,000. Smith's consumer surplus is

Suppose a presidential candidate promises to increase the government budget surplus and claims that doing so will stop U.S. citizens from investing in foreign companies and increase the value of the dollar. Evaluate this candidate's promise

Suppose a company's bond sold for $100 last month and this month the price is $90. The annual interest payment is $18. The current yield on this bond is

A. 20 percent. B. 10 percent. C. 18 percent. D. 1.8 percent.