Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me answer these multi choice questions :) Question 19 One year before maturity, the price of a bond with a principal amount of

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Please help me answer these multi choice questions :)

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Question 19 One year before maturity, the price of a bond with a principal amount of $1,000 and a coupon rate of 5% paid annually fell to $981. The one-year interest rate: C Remained at 5% C Rose to 7.0% Rose to 6.0% C Rose to 8.5%Question 22 In an open economy, a decrease in national saving the equilibrium domestic real interest rate and the quantity of net capital inflows and the quantity of domestic investment increases; increases; increases decreases; decreases; decreases increases; decreases; decreases C increases; increases; decreasesQuestion 23 Use the following figure to answer the question: PAE Y = PAE Expenditure | ine (r= 1%) Expenditure I ine (! = 3%) Expenditure | ine (r = 5%) 450 3 000 5 000 7 000 Output Y Based on the diagram, if potential output equals 5000 and the real interest rate is 5%, then there is gap and the Reserve Bank must the real interest rate so that output will equal potential output. an expansionary; increase a contractionary; decrease a contractionary; increase no output; not changeTight monetary policy _ interest rates, which . the demand for a currency and the fundamental value of the exchange rate. C increases; decreases; increases increases; increases; increases C decreases; decreases; decreases C increases; increases; decreasesQuestion 25 Holding all else constant, an increase in Australian real GDP will _ the supply of dollars in the foreign exchange market and _ the equilibrium Japanese yen/Australian dollar exchange rate. not change; not change decrease; increase increase; increase increase; decreaseQuestion 29 If firms decide to increase their amount of short-term borrowing, this will: Increase the supply of 90-day bills, causing the 90-day bill rate to fall. C Increase the supply of 90-day bills, causing the price to fall. C Decrease the supply of 90-day bills, causing the price to rise. C Decrease the supply of 90-day bills, causing the 90-day bill rate to fall

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

3rd Edition

1319105564, 978-1319105563

More Books

Students also viewed these Economics questions

Question

=+b) Drivers scores on the written part of a driving test.

Answered: 1 week ago

Question

What is meant by formal organisation ?

Answered: 1 week ago

Question

What is meant by staff authority ?

Answered: 1 week ago

Question

Discuss the various types of policies ?

Answered: 1 week ago

Question

Briefly explain the various types of leadership ?

Answered: 1 week ago

Question

Always show respect for the other person or persons.

Answered: 1 week ago

Question

Self-awareness is linked to the businesss results.

Answered: 1 week ago

Question

1. Too reflect on self-management

Answered: 1 week ago