Which of the following would likely make the interest rate on a bond higher than otherwise?
a. both high credit risk and a long term
b. high credit risk but not a long term
c. a long term but not a high credit risk
d. neither high credit risk nor a long term
a
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If firms are more optimistic that future profits will rise and remain strong for the next few years, then
a. investment spending will fall. b. investment spending will rise. c. investment spending will remain unaffected. d. investment spending will rise and then fall.
Governments can address the adverse selection problem in the health insurance market by requiring all its citizens to have health insurance
Indicate whether the statement is true or false
The best example of a frictionally unemployed worker is one who: a. has been looking for work for 27 weeks or longer
b. is laid off during a recessionary period in the economy. c. is in the process of voluntarily switching jobs. d. is discouraged and not actively seeking work. e. cannot find a job that matches with his skills.
Public goods are always provided by the government because private markets do not have an incentive to provide them.
Answer the following statement true (T) or false (F)