An elimination of tariffs on goods imported into Moldavia increases its budget deficit. Which of the following would definitely be a long run result of these changes to the Moldavian macroeconomy? I. The real interest rate in Moldavia rises. II. The real exchange rate in Moldavia rises. III. The level of net exports in Moldavia falls.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.