When investigating the term structure of interest rates, the bonds compared are
A) identical except for their maturity dates.
B) identical in maturity, but differ in terms of liquidity and risk.
C) identical in terms of risk, but differ in terms of tax characteristics.
D) identical except for their liquidity.
A
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A recent medical study reports new benefits of cycling. Simultaneously, the price of the parts needed to make bikes falls. The demand curve would _________ and the supply curve would__________
a. Shift to the right, shift to the left b. shift to the left, shift to the right c. shift to the left, shift to the left d. shift to the right, shift to the right
An increase in both equilibrium price and quantity is a consequence of a(n): a. increase in supply
b. increase in demand. c. decrease in demand d. decrease in supply
A perfectly competitive firm would be willing to remain in the industry in the long run at zero economic profit because
a. its total revenues would be positive. b. accounting profit would be negative. c. revenue is equal to all costs, including the opportunity cost of capital and labor. d. its fixed costs would prevent it from leaving the industry.
For which of the following policies is there a significant implementation lag?
a. fiscal policy and monetary policy b. fiscal policy but not monetary policy c. monetary policy but not fiscal policy d. neither monetary policy nor fiscal policy