Currently, a three-month Treasury bill has a yield of 5% while the yield on a ten-year Treasury bond is 4.7%. What is the risk premium of the typical A-rated ten-year corporate bond with a yield of 5.5%?
A) 0.5%
B) 0.8%
C) 5.5%
D) 1.17%
B
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If the university administration plans to cut tuition charges in the hope of attracting more students and thereby increasing tuition revenues, we know
A) they are assuming an elastic demand. B) they are assuming an inelastic demand. C) they cannot succeed because of the law of demand. D) they must be running in the red. E) they will only succeed if more students can be enrolled at no cost.
Which aspect of macroeconomics generates the most controversy?
A) economic growth B) the causes of business cycles C) supply and demand D) competitive equilibrium
Economic indexes whose upward and downward turning points generally precede the peaks and troughs of general business activity are known as
a. causal indicators. b. leading indicators. c. roughly preceding indicators. d. primary indicators.
The vertical intercept of the consumption function measures autonomous consumption. It represents the combined impact on consumption spending of all factors other than disposable income
a. True b. False