Bonds rated as "highly speculative" are:
A. rated so because they guarantee high returns for the buyer.
B. rated so because they do not have any default risk.
C. commonly referred to as junk bonds.
D. ranked just above investment grade by Standard amp; Poor's.
Answer: C
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According to aggregate demand and supply analysis, the negative demand shock of 2000-2004 had the effect of
A) increasing aggregate output, lowering unemployment, and raising inflation. B) decreasing aggregate output, raising unemployment, and raising inflation. C) increasing aggregate output, lowering unemployment, and lowering inflation. D) decreasing aggregate output, raising unemployment, and lowering inflation.
A hurricane destroyed the peach crop in South Carolina. Shortly thereafter the price of peaches rose significantly. These events suggest that a(n):
a. decrease in the supply of peaches caused the price of peaches to rise. b. increase in the supply of peaches caused the price of peaches to rise. c. increase in demand caused the price of peaches to rise. d. decrease in demand caused the price of peaches to rise.
The wealth effect explains the:
A. positive relationship that exists between consumer spending and overall price level. B. negative relationship that exists between consumer spending and overall asset valuation. C. positive relationship that exists between consumer spending and overall asset valuation. D. negative relationship that exists between consumer spending and overall price level.
Disinflation began in the year _____.
