Generally with bond ratings, the lower the rating, the ________ the interest rate an investor will receive and the ________ the the risk that the issuer of the bond will default
A) lower; lower B) higher; lower C) higher; higher D) lower; higher
C
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Firm A and Firm B are the only two producers of a new solar powered cell. Society will gain the most when both firms decide to: a. form a cartel
b. merge. c. differentiate their products. d. produce at the downward-sloping part of their respective average total cost curves.
Why do long lags make discretionary policy less effective?
What will be an ideal response?
Generally speaking, a country whose currency appreciates will experience, as a result,
A. Increasing interest rates from capital inflow. B. Increased exports. C. Reduced aggregate demand as a result of a decrease in exports. D. Inflationary pressure from higher import prices.
Assuming conventional supply and demand curves, changes in the determinants of both supply and demand will generally:
A. alter both equilibrium price and quantity. B. alter equilibrium quantity but not equilibrium price. C. alter equilibrium price but not equilibrium quantity. D. have no effect on equilibrium price or quantity.