Which of the following factors would tend to be consistent with a downward-sloping yield curve?
a. A high and positive default risk premium.
b. A high and positive maturity risk premium.
c. The absence of a liquidity premium.
d. Expected inflation is expected to decline in future years.
Ans: d. Expected inflation is expected to decline in future years.
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If a firm is earning zero economic profit, then:
A. the owner will not be able to pay himself or herself a salary. B. the firm's accounting profit is equal to the firm's implicit costs. C. the firm will shut down in the long run, but will continue to operate in the short run. D. the firm's revenues are sufficient to pay its explicit costs, but not its implicit costs.
In 2014, China had accumulated $3.8 trillion worth of reserve assets. These $3.8 trillion entered into China's balance of payments in the:
a. Trade balance. b. Balance on goods and services. c. Financial Account. d. The total amount did not enter into China's balance of payments. Only changes enter the balance of payments.
Which of the following is not associated with global poverty?
A. Long life expectancy. B. The inequality trap. C. Prevalence of HIV. D. Lack of education.
An increased demand for lawyers' services to prosecute damage suits
What will be an ideal response?