Questions from Macroeconomics


Q: “An issuer of a bond is a borrower.” Do you

“An issuer of a bond is a borrower.” Do you agree or disagree? Explain your answer.

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Q: If the face value of a bond is $10,900

If the face value of a bond is $10,900 and the annual coupon payment is $600, what is the coupon rate?

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Q: Monetary policy can affect relative prices. Do you agree or disagree

Monetary policy can affect relative prices. Do you agree or disagree with this statement? Explain your answer.

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Q: Why might a person purchase an inflation-indexed Treasury bond?

Why might a person purchase an inflation-indexed Treasury bond?

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Q: If bond prices fall, will individuals want to hold more or

If bond prices fall, will individuals want to hold more or less money? Explain your answer.

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Q: Why is the demand curve for money downward sloping?

Why is the demand curve for money downward sloping?

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Q: Explain how it is possible to have too much money.

Explain how it is possible to have too much money.

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Q: Last year, Manuel bought a bond for $10,000

Last year, Manuel bought a bond for $10,000 that promises to pay him $900 a year. This year he can buy a bond for $10,000 that promises to pay $1,000 a year. If Manuel wants to sell his old bond, what...

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Q: Last year, Charu bought a bond for $10,000

Last year, Charu bought a bond for $10,000 that promises to pay her $1,000 a year. This year investors can buy a bond for $10,000 that promises to pay $800 a year. If Charu wants to sell her old bond,...

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Q: The annual average percentage change in Real GDP is 2.3

The annual average percentage change in Real GDP is 2.3 percent, and the annual average percentage change in velocity is 1.1 percent. Using the monetary rule discussed in the text, what percentage cha...

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