Bonds with ________ tend to have lower interest rates than bonds with ________
A) high liquidity; low liquidity
B) high default risk; low default risk
C) longer maturity; shorter maturity
D) high tax burdens on their interest; low tax burdens on their interest
A
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A decrease in demand and an increase in supply will
A. affect price in an indeterminate way and decrease the equilibrium quantity. B. decrease price and affect the equilibrium quantity in an indeterminate way. C. decrease price and increase the equilibrium quantity. D. increase price and affect the equilibrium quantity in an indeterminate way.
Of the following, which is the largest source of government funds in the long run?
A) government borrowing B) government transfers C) user fees D) taxation
If price elasticity of supply is less than 1
A) supply is elastic. B) demand is elastic. C) demand is inelastic. D) supply is inelastic.
The political business cycle refers to the possibility that:
a. incumbent politicians will be reelected regardless of the state of the economy. b. politicians will manipulate the economy to enhance their chances of being reelected. c. there are more recessions prior to elections. d. recessions coincide with election years.