Mr. Pierpont has wealth of $200,000. He wants to keep at least $80,000 in bonds at all times, and will shift $10,000 into bonds from his checking account for each percentage point that the interest rate on bonds exceeds the interest rate on his checking account. If the interest rate on checking accounts is 4% and the interest rate on bonds is 9%, how much does Mr. Pierpont keep in his checking account?

Barter transactions typically take place between two individuals with the same goods to supply

a. True b. False Indicate whether the statement is true or false

Okun's law indicates that for:

A.  Every 1 percent that the actual unemployment rate exceeds the natural unemployment rate, a 2 percent GDP gap is generated B.  Every 1 percent that the actual unemployment rate exceeds the natural unemployment rate, a 5 percent GDP gap is generated C.  A 5 percent GDP gap, a 1 percent increase in the natural unemployment rate is generated D.  A 2 percent GDP gap, a 2 percent increase in the actual unemployment rate is generated