The coupon rate on newly issued bonds is usually higher for bonds with ________ terms and ________ risk that the borrower will go bankrupt.
A. shorter; greater
B. shorter; smaller
C. longer; smaller
D. longer; greater
Answer: D
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In the long run, in a monopolistically competitive market, price will be
A) equal to MR. B) equal to MC. C) greater ATC. D) equal to ATC.
Suppose the U.S. dollar gains strength against the euro (and against other major currencies). This strengthening of the dollar will cause which of the following to occur?
A) The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the right. B) The aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the right. C) The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the left. D) the aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the left.
A monopolist that is making a profit is producing where which of the following occurs?
A. P = MC. B. P = AC. C. MC = AC. D. P > AC.
C + I + G + NX equals
A. the income-expenditure multiplier. B. potential GDP. C. aggregate expenditure. D. the output gap.