During a recession you would expect the difference between the commercial paper rate and the yield on U.S. T-bills of the same maturity to:
A. be the same since their maturities are the same.
B. fluctuate rarely.
C. increase reflecting the possibility of higher default risk for commercial paper.
D. decrease.
Answer: C
You might also like to view...
Which of these is not a good example of skill-biased technical change?
A) GPS navigation equipment in delivery trucks B) web-enabled virtual classrooms C) self-service check out scanners D) use of robots in automobile assembly
Which of the following countries had the highest percentage of young adults with a college degree in 2012?
a. Norway b. Canada c. Japan d. France e. Italy
The exchange rate is $1 = 110 yen. If the price of a Japanese good is 37,500 yen, what is the approximate price of the good in dollars?
A) $29.45 B) $4,125,000 C) $294.49 D) $340.91 E) none of the above
A decrease in planned investment will shift the _____
Fill in the blank(s) with the appropriate word(s).