In the keynesian-cross model, if taxes are reduced by 100, then planned expenditures for any given level of income.
a. increase by 100
b. increase but by less than 100
c. decrease by 100
d. increase by more than 100

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?