Question: Looking for some help with these two different questions: Question 1: Suppose the price level and value of the dollar in year 1 are 1


Looking for some help with these two different questions:
Question 1:


Suppose the price level and value of the dollar in year 1 are 1 and $1, respectively. Instructions: Round your answers to two decimal places. a. If the price level rises to 1.55 in year 2. what is the new value of the dollar? $ E b. If instead the price level had fallen to 0.35, what would have been the value of the dollar? $E c. What generalization can you draw from your answers? 0 The amount a dollar will buy varies inversely with the price level. 0 The amount a dollar will buy varies directly with the price level. 0 The price level has no effect on the amount a dollar will buy. Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $950. Compute and enter in the spaces provided in the table below either the interest rate that the bond would yield to a bond buyer at each of the bond prices listed or the bond price at each of the interest yields shown. Instructions: For bond prices, round to the nearest dollar. For interest rate, round your answer up to two decimal places. Bond Price Interest rate (s) : $ 8, 000 S 10.56 $10 , 000 $11 , 000 7.31 What generalization can be drawn from the completed table? (Click to select) v
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