We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that
a. the credit risk associated with Bond A is lower than the credit risk associated with Bond B.
b. Bond A was issued by the city of Philadelphia and Bond B was issued by Red Hat Corporation.
c. Bond A has a term of 20 years and Bond B has a term of 2 years.
d. All of the above are correct.
c
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The demand for a good or service is called a derived demand because it is derived from the demand for the factors of production that produce this good or service
Indicate whether the statement is true or false
Financial crises in advanced economies might start from a
A) debt deflation. B) currency crisis. C) mismanagement of financial innovations. D) currency mismatch.
A fixed exchange rate, say, Mexican pesos per dollar, is determined by
a. U.S. consumers that buy Mexican exports b. the U.S. government c. U.S. businesses that export to Mexico d. the foreign exchange market e. the levels at which other exchange rates float
If the demand for new cars is elastic, an increase in price will result in:
A. an increase in profits. B. an increase in total revenue. C. a decrease in total revenue. D. an increase in the quantity demanded.