According to the liquidity premium theory, the yield curve normally has a positive slope because
A) short-term interest rates are expected to rise.
B) term premiums rise as the time to maturity increases.
C) risk premiums rise over time.
D) long-term bonds are more liquid than short-term bonds.
B
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Refer to the table below. If the profit for each unit of paper product is $2 and the profit for each unit of lumber is $5, what is Big Oaks' marginal cost of producing between points D and E on their production possibilities frontier?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) $22.50
B) $4.50
C) $9
D) $10.50
The top 20 PACs, Political Action Committees, spent how much in 2010?
a. 100 million b. $200 million c. $300 million d. $400 million
One lesson of the Great Depression was that potential GDP could _____
Fill in the blank(s) with the appropriate word(s).
Street entertainers face the free-rider problem when they perform because of the:
A. Law of Demand B. Diminishing marginal utility C. Nonexcludability characteristic D. Rivalry characteristic