Globalization and Trade

question 9

Multiple Choice

Globalization and trade:

• A) expands economic potential in a similar fashion to productivity enhancing technological progress.
• B) shifts both the short-run and long-run aggregate supply curves to the right.
• C) provide an opportunity to reduce inflation permanently.
• D) all of the answers provided are correct.

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Definitions:

Par Value

Par value is the nominal or face value of a bond, share, or coupon as stated by the issuer.

Coupon Payments

Regular interest payments made to bondholders over the life of a bond.

Price Paid

The amount of money exchanged for the acquisition of a good, service, or asset.

Original Issue Discount

The difference between the face value of a bond and its offering price when the bond is issued at a lower price.