Pavel is considering buying a $10,000 bond with no expiration date that generates yearly payments of $500. If the price of the bond were to fall to $9,000:
A. the bond's rate of return would rise from 5 percent to 5.6 percent.
B. the bond payments would fall to $450 per year.
C. Pavel should definitely buy the bond because the price is lower.
D. Pavel should definitely not buy the bond because the lower price means it is worth less.
A. the bond's rate of return would rise from 5 percent to 5.6 percent
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In the simple deposit expansion model, if the banking system has excess reserves of $75, and the required reserve ratio is 20%, the potential expansion of checkable deposits is
A) $75. B) $750. C) $37.50. D) $375.
Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.
Figure 23.2Refer to Figure 23.2. Jerry's ________ equals his ________ at Point A.
A. consumption; income B. saving; income C. consumption; saving D. all of the above