An increase in default risk on corporate bonds ________ the demand for these bonds, but ________ the demand for default-free bonds, everything else held constant
A) increases; lowers
B) lowers; increases
C) does not change; greatly increases
D) moderately lowers; does not change
B
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Some charge that third-degree price discrimination is unfair or that it reduces social welfare. Why does charging one group a lower price hurt anyone?
What will be an ideal response?
In the simple circular flow model, households and firms interact with each other in which two broad markets?
a. service and education b. real estate and insurance c. factor and product d. stock and bond
You are a student at a university. You pay $8,000 per year in tuition, $5,000 per year in living expenses, and $1,000 per year for books. Were you not in school, you could earn $15,000 per year and you would not live with your parents. What is your economic cost of a year in college?
A. $9,000 B. $15,000 C. $24,000 D. $29,000
For a closed economy with no government, we know that at every level of GDP actual investment equals
A. the difference between planned saving and actual saving. B. planned saving. C. the difference between planned investment and actual saving. D. planned investment.