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Author Question: Based on price setting behavior, which of the following will cause a reduction in the price level? ... (Read 66 times)

Kikoku

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  • Posts: 540
on: Jun 30, 2018
Based on price setting behavior, which of the following will cause a reduction in the price level?
 
  A) an increase in productivity
  B) a reduction in the nominal wage
  C) a reduction in the markup
  D) all of the above
  E) none of the above

Question 2

Suppose a one-year discount bond offers to pay 1000 in one year and currently has a 15 interest rate. Given this information, we know that the bond's price must be
 
  A) 869.56.
  B) 1150.
  C) 850.
  D) 950.
  E) none of the above


paavo

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

D

Answer to Question 2

A


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