Author Question: Based on price setting behavior, which of the following will cause a reduction in the price level? ... (Read 126 times)

Kikoku

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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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Answer to Question 1

D

Answer to Question 2

A



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