-The Data in the Above Table Indicate That When the Price

question 189

Multiple Choice

-The data in the above table indicate that when the price level is 120,

• A) inventories rise and the price level falls.
• B) the unemployment rate is at its equilibrium level.
• C) the economy is in a long- run macroeconomic equilibrium.
• D) inventories fall and the price level rises.

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Definitions:

Semiannual Coupon

A fixed interest payment on a bond that is made twice a year.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all paid interest and principal repayments.

Market Price

The ongoing financial rate for purchasing or selling an asset or service.

Par Value

The face value of a bond or the stock value stated in the corporate charter, not necessarily reflecting the market value.