We would expect the interest rate on Bond A to be lower than the interest rate on Bond B if the two bonds have identical characteristics except that
a. the credit risk associated with Bond A is lower than the credit risk associated with Bond B.
b. Bond A was issued by the Apple corporation and Bond B was issued by the city of Houston.
c. Bond A has a term of 20 years and Bond B has a term of 2 years.
d. All of the above are correct.
a
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An argument is sometimes made that moderate inflation may help the economy by making which of the following more flexible?
a. interest rates b. wages in labor markets c. surpluses d. shortages
Whenever spending changes, which of the following dampens the overall effect on GDP?
a. A change in the money supply. b. A change in taxes. c. A change in the interest rate. d. A change in the public's expectations. e. None of the above.
Which of the following statements is true?
A) National income accountants consider the portion of corporate profits that is used to pay corporate profits taxes to be income earned by households but not received. B) Net domestic product (NDP) is a smaller dollar amount than GDP. C) Personal income includes transfer payments. D) b and c E) a, b, and c
Nobel Prize winning economist Joseph Stiglitz has argued that since its inception, the _______ has changed its philosophy from an organization that believed markets sometimes behaved badly to an organization that virtually worships free markets.
Fill in the blank(s) with the appropriate word(s).