A risk premium is
a. the difference between the earnings of a low risk asset and a high risk asset
b. premium paid to a security holder to compensate him for bearing a higher risk
c. both A&B
d. none of the above
c
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Isabel receives a check for $7,000 from Kermit and deposits it in her bank. Suppose that the reserve ratio is 10 percent. As a result of this transaction the money supply will
A) decrease by $63,000 and then increase by $70,000. B) increase by $70,000. C) decrease by $70,000 and then increase by $63,000. D) not change.
If government uses a pollution tax to control pollution, the tax should be set
A) equal to the private cost of production created by the activity. B) equal to the external cost of production created by the activity. C) equal to the social cost of production created by the activity. D) at the amount that will eliminate the pollution completely.
Jess owns a sandwich sho
A) 1.33. B) 0.75. C) 3.00. D) 4.00. E) 1.50.
If a voter is ignorant of some of the issues that affect public policy, then the voter is definitely behaving irrationally
Indicate whether the statement is true or false