Refer to the graph. The intercept of the three Security Market Lines is determined by:
A. the risk-free interest rate.
B. the interest rate on financial assets with a beta of 1.
C. the rate on long-term U.S. government bonds.
D. all of these.
A. the risk-free interest rate.
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The demand for luxury suites at basketball games is more elastic if
A) these suites are a necessity. B) these suites are a luxury item. C) few close substitutes exist for these suites. D) basketball fans have little time to look for alternative suites. E) poorer fans cannot afford luxury suites.
If the required reserve ratio increases and the monetary base is unchanged, the value of the money multiplier will ________ and the value of the money supply will ________
A) decline; decline B) decline; increase C) increase; decline D) increase; increase
Neither monetary policy nor any government policy can change the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
An economy recently had 800 billion euros of saving and 600 billion euros of net capital outflow. What was its investment? What was its quantity of loanable funds supplied?