Answer:
$895.22
Explanation:
We use the present value formula to determine the current bond price i.e shown in the attachment below:
Given that,
Future value = $1,000
Rate of interest = 10.5%
NPER = 8 years
PMT = $1,000 × 8.5% = $85
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the current bond price is $895.22
Answer: Government
Explanation:
Classical theory of economics states that the economy is self regulated and operates at full employment. It states that the economy is fully capable of achieving real GDP output when employment is full. It assumes that there is neither government nor international trade involved with the economy.
Answer:
0.75
Explanation:
Marginal Propensity to Consume (MPC) is the change in consumption due to change in income
Change in consumption = $7,250 - $6,500 = $750
Change in income = $11,000 - $10,000 = $1,000
MPC = Change in consumption / Change in income
MPC = 750 / 100
MPC = 0.75