1.Suppose that a bond has paid a coupon of 50$, the initial (buying) price was $300 and the new (selling) price is $375. The rate of return is equal to

A) 41.67%

B) 33.33%

C) 66.67%

D)25%

2.Which of the following statements is true?

A) As the interest rate increases, the opportunity cost of holding money decreases

B) A higher level of income causes the demand for money at each interest rate to increase and the demand curve to shift to the left

C) If the market for money is in equilibrium, the the bond market is in disequilibrium

D) An increase in the money supply could ultimately lead to the money demand curve to shift rightwards

3.Supose that the domestic demand for sugar is given by P=27-2Qd and the domestic supply is given by P=2+3Qs. the world price is $11 and the government decided to impose an import tariff of 3$ per unit. The decision of the government will reduce the quantity of imported of sugar.

A) from 10 units to 5 units

B) from 5 units to 2.5 units

C) from 15 units to 10 units

D) from 41 units to 22 units