Consider a 5-year bond with a face value of $500 and an annual coupon rate of 5%. If the yield is 9% then the market price of this bond will be approximately O $464 O $436 $394 $442

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Chapter1: Making Economics Decisions
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Consider a 5-year bond with a face value of $500 and an annual coupon rate of 5%. If the yield is 9% then
the market price of this bond will be approximately
O $464
O $436
O $394
• $442
Question 19
In the IS-LM model with interest-setting monetary policy and endogenous money, an expansionary
monetary policy will tend to cause
an increase in the level of income, an increase in the transactions demand for money and an increase in the quantity of
money
O an increase in the level of real income, an increase in the asset demand for money and a reduction in the quantity of
money
an increase in the level of income, a decrease in the asset demand for money and a reduction in the quantity of money
O adecrease in the level of income, an increase in the asset demand for money and an increase in the transactions
demand for money
Question 20
In the IS-LM model with interest setting monetary policy and endogenous money, an expansionary fiscal
policy will tend to
O increase the equilibrium level of output and decrease the equilibrium interest rate
O increase the equilibrium level of output and increase the equilibrium interest rate
increase the equilibrium level of output and leave the equilibrium interest rate unchanged
O increase the equilibrium level of output and leave the equilibrium quantity aof money unchanged
Transcribed Image Text:Consider a 5-year bond with a face value of $500 and an annual coupon rate of 5%. If the yield is 9% then the market price of this bond will be approximately O $464 O $436 O $394 • $442 Question 19 In the IS-LM model with interest-setting monetary policy and endogenous money, an expansionary monetary policy will tend to cause an increase in the level of income, an increase in the transactions demand for money and an increase in the quantity of money O an increase in the level of real income, an increase in the asset demand for money and a reduction in the quantity of money an increase in the level of income, a decrease in the asset demand for money and a reduction in the quantity of money O adecrease in the level of income, an increase in the asset demand for money and an increase in the transactions demand for money Question 20 In the IS-LM model with interest setting monetary policy and endogenous money, an expansionary fiscal policy will tend to O increase the equilibrium level of output and decrease the equilibrium interest rate O increase the equilibrium level of output and increase the equilibrium interest rate increase the equilibrium level of output and leave the equilibrium interest rate unchanged O increase the equilibrium level of output and leave the equilibrium quantity aof money unchanged
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