Could the holding period return ever be less than the yield to maturity? Explain.
What will be an ideal response?
This is possible under the condition that the bond is sold before it matures for an amount less than the face value. If this happened then the holding period return would be less than the yield to maturity.
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The marginal income tax rate applies to
A) all income earned by a family. B) the income in the highest tax bracket reached. C) the income of the highest income U.S. taxpayers. D) the income received by people above the national average.
Which of the following is most likely to cause the productivity of labor to increase?
a. higher money wages. b. an increase in the proportion of the workforce that belongs to a labor union. c. a higher rate of investment in human and nonhuman capital. d. more flexible working hours and improved retirement plans.
According to the structural stagnation model, an increasing trade deficit translates into ________ unemployment and ________ globally-constrained potential output.
A. higher; lower B. lower; higher C. lower; lower D. higher; higher
The production of agricultural products such as wheat or corn would best be described by which market model?
A. Pure competition B. Pure monopoly C. Monopolistic competition D. Oligopoly