« previous next »

Author Question: Assume that you purchased a 1,000 perpetual bond and the interest rate on that bond declined from 5 ... (Read 83 times)

yoroshambo

  • Hero Member
  • *****
  • Posts: 566
on: Jun 30, 2018
Assume that you purchased a 1,000 perpetual bond and the interest rate on that bond declined from 5 percent to 2 percent. Thus,
 
  a. the bond price increased by 1,500.
  b. you could sell this bond at a capital gain.
  c. if this was anticipated, the speculative demand for money fell.
  d. All of the above
  e. None of the above

Question 2

According to the new classical theory, a monetary surprise will
 
  a. shift the labor supply curve to the right in the short run.
  b. shift the labor supply curve to the left in the short run.
  c. not shift the labor supply curve in the short run.
  d. shift the aggregate supply curve to the left in the short run.
  e. shift the aggregate supply curve to the right in the short run.


jomama

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Rate of Residential Change, Past Year, in the United States Rate of Residential Change, Past Year, in the United States
Influence of substrate concentration on the rate of an enzyme-catalyzed reaction. Influence of substrate concentration on the rate of an enzyme-catalyzed reaction.
Hydration of a Carbon–Carbon Double Bond Hydration of a Carbon–Carbon Double Bond
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ... A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ...
Video: Renal Failure

For a complete list of videos, visit our video library