Which of the following is most risky at a time of fluctuating interest rates?
A) Commercial paper
B) U.S. Treasury bill
C) Corporate bond
D) Large negotiable bank CD
C
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Government rules and regulations can
A) never enhance trade B) add information to an efficient market C) enhance trade D) all of these choices
Which of the following will increase the demand for loanable funds?
a. a newly established consumption tax b. a decrease in the real interest rate c. an increase in the real interest rate d. creation of an investment tax credit for businesses
A person has a comparative advantage if
a. she can produce everything more cheaply than her co-worker can b. she can produce everything at a faster rate than her co-worker can c. she can produce a good with a smaller opportunity cost than her co-worker can d. she sees through corporate and government manipulation e. she gets rich through inheritance
To correct for the externalities, the revenue generated by a corrective tax on steel producers would most likely be used to ______.
a. help the company pay for internalizing the cost b. compensate those harmed by pollution c. expand the firm’s production output d. help lower the market price for consumers