The equation Y = A is known as the ________

If you own a $1,000 face value bond with one year remaining to maturity and a 7 percent coupon rate and new bonds are paying 11 percent, what is the most you can get for your old bond?

A) $1,028.85 B) $1,000.00 C) $963.96 D) $952.30

As the LM curve becomes steeper, an unexpected decrease in consumer confidence

A) will cause a relatively large increase in output and relatively large increase in the interest rate. B) will cause a relatively small increase in output and relatively small increase in the interest rate. C) is more likely to cause stock prices to rise. D) is more likely to cause stock prices to fall.