In a Fixed Rate Bond, the Variable Which Changes to Provide

question 66

Multiple Choice

In a fixed rate bond, the variable which changes to provide the current market rate of return to investors is

• A) face value
• B) coupon rate
• C) maturity
• D) price

---

Definitions:

Disposable Income

Net resources for spending and saving available to households after subtracting income taxes.

MPC

MPC, or Marginal Propensity to Consume, is the proportion of additional income that an individual spends on consumption.

APC

Average Propensity to Consume, the fraction of income that households spend on consumption as opposed to saving.

MPS

An acronym that can stand for multiple financial and economic terms, such as Marginal Propensity to Save, which indicates the fraction of additional income that a household saves.