Suppose you own some German government bonds that pay you interest every year. This interest is entered into which of the balance of payments accounts?
A) trade account
B) interest account
C) current account
D) capital and financial account
E) official settlements account
Question 2
When disposable income increases,
A) the consumption function shifts downward.
B) there is a movement downward along the consumption function, but the consumption function does not shift.
C) there is no movement along the consumption function, and the consumption function does not shift.
D) the consumption function shifts upward.
E) there is a movement upward along the consumption function, but the consumption function does not shift.
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Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to ...