An exchange rate that is set by official government policy is called a ________ exchange rate.

The downward slope of a demand curve

A) represents the law of demand. B) shows that as the price of a good rises, consumers increase the quantity they demand. C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. D) indicates how demand changes when incomes rise and the good is a normal good. E) indicates how demand changes when the price changes and the good is a normal good.

A $1,000 bond, which matures in one year, has a price of $925. The interest rate on this bond is

A) 7.5%. B) 8.11%. C) 9.25%. D) 9.20%.