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disa [49]
3 years ago
14

The short-run effects of an increase in the expected price level include a. a lower level of output and a lower price level. b.

a lower level of output and a higher price level. c. a higher level of output and a lower price level. d. a higher level of output and a higher price level.
Business
1 answer:
maria [59]3 years ago
3 0

Answer: Option (b) is correct.

Explanation:

Correct option: A lower level of output and a higher price level.

If there is an increase in the expected price level, as a result short run aggregate supply curve shifts leftward. Therefore, this shift in aggregate supply curve will increase the price level and reduces the level of output in an economy. The long run supply curve will be unaffected by any change in the expected price level.

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The correct option is D.
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Evaluate this statement: "If the yield of two bonds having equal maturity changes the same amount, the price of the lower coupon
AfilCa [17]

Answer:

FALSE

Explanation:

As the lower coupon means there is less amount of cash subject to variation of interest rate.

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If a bonds coupon payment is 40 dollars while another bond coupon payment  is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.

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Anyone know the answer to this one?
balu736 [363]

it looks to me that the answer could be C

Explanation:

it may be C

8 0
3 years ago
Read 2 more answers
Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $5
mash [69]

Answer:

PV= $37,204.70

Explanation:

Giving the following information:

Interest rate= 6% compounded semiannually= 0.03

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To calculate the initial investment to reach the objective, we need to use the following formula:

PV= FV/(1+i)^n

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PV= $37,204.70

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Explanation:

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