Which of the following is considered a default-risk-free instrument?
A) a three-month commercial paper issued by GE
B) a share of stock issued by Google
C) a three-month Treasury bill
D) a ten-year bond issued by Intel
C
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Monique buys a new television for $795. She receives consumer surplus of $355 from the purchase. How much does Monique value her television?
A) $355 B) $440 C) $795 D) $1150
Since the 1960s, macroeconomists have become more aware
a. that increases in government expenditures are more effective than tax reductions as a source of economic stimulus. b. that persistent inflation will reduce the unemployment rate. c. of both the potential and the limitations of fiscal and monetary policy as stabilization tools. d. of the fact that fiscal policy is more potent than monetary policy.
Which one of the following is an area of continued disagreement among modern macroeconomists with regard to the use of fiscal policy?
What will be an ideal response?
In the market for euros, an increase in U.S. real interest rates tends to
A. cause no change in equilibrium price. B. increase equilibrium price. C. decrease equilibrium price. D. increase excess demand.