Junk bonds, bonds with a low bond rating, are also known as
A) high-yield bonds.
B) investment grade bonds.
C) high quality bonds.
D) zero-coupon bonds.
A
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The efficacy of tax incentives as an instrument of activist fiscal policy
A) has been proven to be very substantial in the view of most economists. B) is not plagued by a substantial lag between the passage of tax legislation and the resulting investment spending. C) is subject to debate but still is limited by the "legislative lag." D) has been proven to be so limited that it is no longer considered to be a serious option by most economists.
Answer the following statements true (T) or false (F)
1) In reality, the expected-profit-maximization rule is an operational guideline. 2) Regression analysis can be used to help managers maximize their expected profit. 3) Managers do not face the risk of their product becoming obsolete as long as they hold their product in inventory. 4) Any action that increases the defendant's expected loss from litigation decreases the maximum amount they are willing to pay to settle. 5) One way to decrease a plaintiff's expected value of litigation is to countersue.
Refer to Figure 17-2. Suppose the economy is at point A in the figure above. Which of the following is true?
A) The current unemployment rate is 3.8% B) Actual Inflation is 1% C) The current unemployment rate is equal to the natural rate of unemployment D) The Economy will move from A to B E) The expected rate of inflation is 5.5%
Consider three imaginary countries. In Aziria, saving amounts to $3,000 and consumption amounts to $7,000; in Graniva, saving amounts to $2,000 and consumption amounts to $8,000; and in Tanistan, saving amounts to $4,500 and consumption amounts to $10,500 . The saving rate is
a. higher in Aziria than in Tanistan, and it is higher in Tanistan than in Graniva. b. higher in Graniva than in Tanistan, and it is higher in Tanistan than in Aziria. c. higher in Tanistan than in Graniva, and it is the same in Graniva and Aziria. d. higher in Aziria than in Graniva, and it is the same in Aziria and Tanistan.