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    Macroeconomics Study Set 68
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    Exam 16: Interest Rates and Monetary Policy
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    A Bond with No Expiration Date Is Priced at $10,000
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A Bond with No Expiration Date Is Priced at $10,000

Question 217

Question 217

True/False

A bond with no expiration date is priced at $10,000 when the interest rate in the economy is 6 percent. If the interest rate falls to 5.5
percent, then this bond's price would decrease.

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