Consider a 5-year bond with a face value of $500 and an annual coupon rate of 5%. If the yield is 9% thenthe market price of this bond will be approximatelyO $464O $436O $394• $442Question 19In the IS-LM model with interest-setting monetary policy and endogenous money, an expansionarymonetary policy will tend to causean increase in the level of income, an increase in the transactions demand for money and an increase in the quantity ofmoneyO an increase in the level of real income, an increase in the asset demand for money and a reduction in the quantity ofmoneyan increase in the level of income, a decrease in the asset demand for money and a reduction in the quantity of moneyO adecrease in the level of income, an increase in the asset demand for money and an increase in the transactionsdemand for moneyQuestion 20In the IS-LM model with interest setting monetary policy and endogenous money, an expansionary fiscalpolicy will tend toO increase the equilibrium level of output and decrease the equilibrium interest rateO increase the equilibrium level of output and increase the equilibrium interest rateincrease the equilibrium level of output and leave the equilibrium interest rate unchangedO increase the equilibrium level of output and leave the equilibrium quantity aof money unchanged

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Answered: Consider a 5-year bond with a face…

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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