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Author Question: Macroeconomics is best described as the study of A) the nation's economy as a whole. B) very ... (Read 51 times)

jc611

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on: Jun 30, 2018
Macroeconomics is best described as the study of
 
  A) the nation's economy as a whole.
  B) very large issues.
  C) the choices made by individual households, firms, and governments.
  D) the relationship between inflation and wage inequality.

Question 2

Describe and explain the relationship between the price of bonds and the interest rate.
 
  What will be an ideal response?


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zoeyesther

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

There is an inverse relationship between the price of a bond and the interest rate. If a bond pays interest of 100 a year and the price of the bond is 1000, the interest rate is 10 percent. If the interest rate falls to 5 percent, then the price of a bond paying 100 a year interest would rise to 2000. The interest rate is the amount of interest paid per year divided by the price of the bond, so the interest rate and the price of the bond are inversely related.


jc611

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Reply 2 on: Jun 30, 2018
Gracias!

amandalm

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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