Which of the following bonds (of equal maturity) would have the lowest risk premium?
A) U.S. government bonds
B) German government bonds
C) the bonds of a financially stable corporation, like IBM
D) Bonds rated Aaa by Moody's
E) junk bonds
A
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According to this Application, falling home equity values have decreased consumer wealth, which is a measure of a consumer's
A) total net worth. B) annual income. C) annual income minus total expenses. D) annual income minus annual expenses.
If the firm in the figure above is unregulated, it will make an economic profit of
A) zero. B) -$240. C) $100. D) $400.
A pollution tax penalizes inefficient firms.
Answer the following statement true (T) or false (F)
According to both the equation of exchange and the quantity theory of money
A. an increase in the money supply will decrease real Gross Domestic Product (GDP). B. an increase in the money supply will increase real Gross Domestic Product (GDP). C. a decrease in the money supply will decrease the velocity of money. D. a decrease in the money supply will decrease the price level.