The price of bonds and the interest rate are

A. inversely related.
B. positively related.
C. related, but we are not sure how.
D. unrelated.

Answer: A

Economics

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Refer to Figure 3-4. At a price of $25, how many units will be supplied?

A) 400 B) 500 C) 600 D) 800

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The nominal rate of interest is 3% and the anticipated rate of inflation is 4%. What is the real rate of interest?

A) 1% B) -1% C) 4% D) 9%

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