Questions from Macroeconomics

Q: The closing price of a stock is$90.25,

The closing price of a stock is$90.25, and the dividend is $3.50. What is the yield of the stock?

Q: The closing price of the stock is $66.40,

The closing price of the stock is $66.40, and the net earnings per share are $2.50. What is the stock’s P/E ratio?

Q: The face value of a bond is $10,000 and

The face value of a bond is $10,000 and the annual coupon payment is $850. What is the coupon rate?

Q: A person buys a bond that matures in 10 years and pays

A person buys a bond that matures in 10 years and pays a coupon rate of 10 percent. The face value of the bond is $10,000. How much money will the bondholder receive in the tenth year?

Q: Explain and diagrammatically represent the Keynesian transmission mechanism.

Explain and diagrammatically represent the Keynesian transmission mechanism.

Q: Explain how, under certain conditions, monetary policy can remove an

Explain how, under certain conditions, monetary policy can remove an economy from a recessionary gap.

Q: Explain how monetary policy may destabilize the economy. /

Explain how monetary policy may destabilize the economy.

Q: Draw both the money market and bond market in equilibrium. Next

Draw both the money market and bond market in equilibrium. Next, explain, and show diagrammatically, show what happens to the interest rate and the price of bonds as a result of the Fed’s decreasing t...

Q: “One-shot inflation may be a demand-side (

“One-shot inflation may be a demand-side (of the economy) or a supply-side phenomenon, but continued inflation is likely to be a demand-side phenomenon.” Do you agree or disagree with this statement?...

Q: Saying that individuals are holding an “excess supply of money”

Saying that individuals are holding an “excess supply of money” is absurd because no one ever has enough money. Do you agree or disagree? Explain your answer.