On May 5, 2020, Bennix Sold $1,000,000 of Five-Year, 3

question 52

Multiple Choice

On May 5, 2020, Bennix sold $1,000,000 of five-year, 3% bonds for $900,500. From the proceeds, the company paid fees of 100,000. Interest is payable semi-annually on May 5 and November 5. What is the effective rate of interest (round to 2 decimal places) ?

• A)3.00%
• B)3.72 %
• C)3.95%
• D)6.27%

Analyze the implications of budget deficits and fiscal policy choices on the economy.

Understand the time lags associated with the effects of monetary and fiscal policy actions on aggregate demand.

Evaluate the arguments for and against the use of policy measures to counteract economic fluctuations.

Explore the special role of net exports and business cycles in economic policy decision-making.

---

Definitions:

New Federalism

A political philosophy that advocates for the transfer of certain powers from the federal government back to the states, aiming to increase local control and reduce the scope of federal authority.

General Revenue-Sharing

A federal program initiated in 1972 that provided state and local governments with funds to be used at their discretion, without specific requirements on how to spend them.

Supreme Court

The highest judicial body in a country, typically having the ultimate authority in legal matters and the interpretation of the constitution.