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Author Question: Assume that the interest rate on a federally insured deposit declines from 15 percent per annum to ... (Read 56 times)

viki

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on: Jun 30, 2018
Assume that the interest rate on a federally insured deposit declines from 15 percent per annum to 10 percent. If an individual holding a U.S. Treasury bill worth 2,500 plans to sell it after this drop in interest rate, he would realize (approximately) a:
 a. capital gain worth 99.
  b. capital loss worth 100.
  c. capital gain worth 100.
  d. capital loss worth 99.

Question 2

If demand is perfectly elastic, then
 A) demand and price are inversely related.
  B) quantity demanded and price are inversely related.
  C) the demand curve is a vertical line.
  D) the demand curve is a horizontal line.


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peilian

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

A

Answer to Question 2

D


viki

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Reply #2 on: Jun 30, 2018
Thank you


peilian

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Reply #3 on: Jun 30, 2018
No problemo


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