If the current price of a bond is greater than its face value
A) an investor will receive a capital gain by holding the bond until maturity.
B) the yield to maturity must be less than the coupon rate.
C) the coupon rate must be less than the current yield.
D) the coupon rate must be equal to the current yield.
B
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In a situation where a market failure occurs,
A. any government intervention will improve on the market outcome. B. there is nothing that the government can do to improve on the market outcome. C. government intervention might improve on the market outcome. D. it will always be preferable to have the government intervene in the market.
The data for the U.S. show that investment and profits
A) have a strong negative relationship. B) are positively related during recessions, and negatively related during expansions. C) move independently. D) are positively related during expansions, and negatively related during recessions. E) none of the above
In economics, ________ are limited but ________ are unlimited.
A. ideas; money B. money; ideas C. wants; resources D. resources; wants
Other than the incentive for the federal government to accrue debt, what other problems are associated with the Fed keeping interest rates low.
What will be an ideal response?