A decrease in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease; increase
D
You might also like to view...
In the real business cycle model, an increase in current total factor productivity leads to
A) an increase in investment. B) a decrease in investment. C) no change in investment. D) an ambiguous response of investment.
If a profit maximizing monopolist faces a linear demand curve and has zero marginal cost, it will produce at
A. the lowest point of marginal revenue curve. B. the lowest point of marginal profit curve. C. elasticity of demand equals 1. D. All of the choices are correct.
Which of the following is NOT a need associated with McClelland's Human Motivation Theory?
a. achievement b. happiness c. affiliation d. power
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.