If a five-year Treasury bond pays an interest of 2.5 percent and a five-year corporate bond pays an interest rate of 4.5 percent, then the interest rate spread on the corporate bond equals 2 percent.
Answer the following statement true (T) or false (F)
True
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The argument that society should be in favor of changes that benefit some people without making others worse off is known as
A) a positive externality. B) the Coase Theorem. C) the cost-benefit principle. D) the Pareto principle.
In 2005, Americans spend an average of more than $6,000 per person per year on health maintenance and care
Indicate whether the statement is true or false
Many country inns shut down in the off-season because
a. the off-season market price falls below average total cost b. the off-season market price can't cover their average fixed cost c. the off-season revenue can't cover variable cost d. the off-season price is below the marginal cost of providing a room e. innkeepers are interested in maximizing revenue
The transactions demand for money is the demand for money by households for:
a. rainy day spending. b. predictable spending purposes. c. liquidity purposes. d. investing purposes.