Refer to the Information Provided in Table 22 The Data in the Table Was Used to Estimate the Answer

question 4

Multiple Choice

Refer to the information provided in Table 22.3 below to answer the question(s) that follow.
Table 22.3
$$\begin{array} { | c | c | c | } \hline \text { Point } & \begin{array} { c } \text { Aggregate } \\\text { Income } ( \boldsymbol { Y } ) \end{array} & \begin{array} { l } \text { Aggregate } \\\text { Consumption } ( \boldsymbol { C } ) \end{array} \\\hline \boldsymbol { A } & 15 & 19 \\\hline \boldsymbol { B } & 30 & 23 \\\hline C & 45 & 27 \\\hline D & 60 & 31 \\\hline E & 75 & 35 \\\hline F & 90 & 39 \\\hline\end{array}$$ The data in the table was used to estimate the following consumption function: C = 20 + 0.2Y
-Refer to Table 22.3. Which of the following points is (are) the best fit for the given consumption function?

• A) A
• B) A, B, C and D
• C) D and F
• D) E

Comprehend the role and duties of a trust company in bond issuance.

Explain the impact of bond ratings on bond prices and interest rates.

Understand the concepts of real and nominal interest rates and the Fisher effect.

Analyze the factors influencing the yield to maturity and effective annual rate of bonds.

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