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Author Question: If a bond pays 50 a year to its holder and you buy it for 200, what is your interest rate? What ... (Read 89 times)

faduma

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on: Jun 29, 2018
If a bond pays 50 a year to its holder and you buy it for 200, what is your interest rate?
 
  What will be an ideal response?

Question 2

If the expenditure multiplier is 5, the slope of the aggregate expenditure (AE) curve is
 
  A) 0.2. B) 0.5. C) 0.8. D) 0.7. E) 0.6.


meltdown117

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The interest rate is (50  200 )  100 = 25.0 percent.

Answer to Question 2

C


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