Why do U.S. government loans generally pay a low interest rate?
What will be an ideal response?
U.S. government bonds pay a low interest rate because the U.S. government is considered to be the safest borrower and most individuals believe that there is very little risk that the government will not repay its loans.
You might also like to view...
Surveys show that a small increase in the price of organic potatoes will cause most people to switch to other alternatives such as packaged mashed potatoes. This finding suggests that the demand curve for organic potatoes is
a. relatively steep. b. relatively flat. c. upward sloping. d. vertical.
In the United States, the IRS estimates that about one ____ of individual income tax due to the federal government is not paid.
Fill in the blank(s) with the appropriate word(s)
By comparing the marginal revenue and marginal cost from each unit produced, a firm in a competitive market can determine the profit-maximizing level of production
a. True b. False Indicate whether the statement is true or false
If TR > TC, a firm would ________ in the short run and ________ in the long run.
A. shut down; contract B. shut down; expand C. operate; expand D. operate; contract