Sydney purchases a newly issued, two-year government bond with a principal amount of $10,000 and a coupon rate of 6 percent paid annually. One year before the bonds matures (and after receiving the coupon payment for the first year), Sydney sells the bond in the bond market. What price (rounded to the nearest dollar) will Sydney receive for his bond if newly issued one-year government bonds are paying a 5 percent coupon rate?

The quantity theory of money addresses the

A) long-run effect the quantity of money has on the price level. B) determinants of potential GDP. C) determinants of the equilibrium unemployment rate. D) short-run effect the quantity of money has on the price level.

Writing in the New York Times on the technology boom of the late 1990s, Michael Lewis argues, "The sad truth, for investors, seems to be that most of the benefits of new technologies are passed right through to consumers free of charge"

What does Lewis means by the benefits of new technology being "passed right through to consumers free of charge"? A) In the long run, price equals the lowest possible average cost of production. In this sense, consumers receive the new technology "free of charge." B) Firms in perfect competition are price takers. Since they cannot influence price, they cannot dictate who benefits from new technologies, even if the benefits of new technology are being "passed right through to consumers free of charge." C) In perfect competition, price equals marginal cost of production. In this sense, consumers receive the new technology "free of charge." D) In perfect competition, consumers place a value on the good equal to its marginal cost of production and since they are willing to pay the marginal valuation of the good, they are essentially receiving the new technology "free of charge."