A speculator becomes the floating-rate payer in an interest-rate swap. She hopes that
A) long rates rise.
B) long rates fall.
C) short rates rise.
D) short rates fall.
D
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The above figure shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets. As a result, there is a
A) shortage equal to 150,000 jackets. B) surplus equal to 150,000 jackets. C) surplus equal to 300,000 jackets. D) shortage equal to 250,000 jackets. E) shortage equal to 100,000 jackets.
Which of the following statements is CORRECT?
A) Compared to stocks, bonds have a higher return. B) Compared to stocks, bond returns have a higher standard deviation. C) Compared to bonds, stock returns have a lower standard deviation. D) Compared to bonds, stock returns have a higher standard deviation.
Which of the following is a shortcoming of GDP?
a. GDP measures nonmarket transactions. b. GDP includes an estimate of illegal transactions. c. GDP includes an estimate of the value of household services. d. None of these are true.
Expansionary monetary policy occurs when
What will be an ideal response?