If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$75 / (1 + .04)6] + [$2,500 / (1 + .04)6]," which of the following is correct?
A) The face value is $2,500, the interest rate you need is 6 percent, and the coupon will mature in 4 years.
B) The face value is $2,500, the coupon is $75, and the coupon will mature in 4 years.
C) The coupon is $75, the interest rate you need is 4 percent, and the coupon will mature in 6 years.
D) The face value is $75, the interest rate you need is 1.04 percent, and the coupon will mature in 6 years.
C
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Which of the following assumptions is found in Friedman's model but not in the new classical model?
A) Supply of labor depends on expected real wage. B) Workers gradually adapt their expectations of the price level to the actual price level. C) imperfect information D) market-clearing labor market
Production that generates positive externalities typically produces _______ than the socially optimum and this is because benefits to ________ are not taken into account by the market
a. more; free riders b. less; free riders c. less; government d. more; government e. more; antipolluters