Suppose the current real interest rate is 4 percent and the equilibrium real interest rate is 3 percent. Then
A) prices rise and inflation occurs.
B) there is a surplus of loanable funds.
C) there is a shortage of loanable funds.
D) there is neither a shortage nor surplus of loanable funds.
B
Economics
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How much is a bond that pays $40 in coupon payments for 2 years and $1,000 at the end of the fourth year worth if the interest rate is 4%?
A) $844.56 B) $924.56 C) $1,000 D) $1,123.2
Economics
In the markets for goods and services in the circular-flow diagram,
a. households and firms are both buyers. b. households and firms are both sellers. c. households are buyers and firms are sellers. d. households are sellers and firms are buyers.
Economics