Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is ________, the coupon rate is ________, and the term of this bond is ________.
A. $10,000; 4 percent; four years
B. $10,000; $400; 4 percent
C. $400; 40 percent; four years
D. $10,400; 4 percent; four years
Answer: A
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Net exports is negative if
A) the value of exports exceeds the value of imports. B) the value of imports exceeds the value of exports. C) the tariff payments are included in the value of imported and exported items. D) too much production occurs in the exporting country during the year.
"The price of digital cameras fell because of improvements in production technology. As a result, the demand for non-digital cameras decreased. This caused the price of non-digital cameras to fall; as the price of non-digital cameras fell the demand for
non-digital cameras decreased even further." Evaluate this statement. A) The statement is false because the demand for non-digital cameras would increase as the price of digital cameras fell. B) The statement is false. A decrease in the price of digital cameras would decrease the demand for non-digital cameras, but a decrease in the price of non-digital cameras would not cause the demand for non-digital cameras to decrease. C) The statement is false because it confuses the law of demand with the law of supply. D) The statement is false because digital camera producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits.