Alfonso, a citizen of Italy, decides to purchase bonds issued by Ireland instead of ones issued by the United States even though the Irish bonds have a higher risk of default. An economic reason for his decision might be that
a. he dislikes U.S. foreign policy.
b. the Irish bonds pay a higher rate of interest.
c. the U.S. government is more stable than the Irish government.
d. None of the above provide an economic reason for buying the riskier bond.
b
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The price of any productive resource is ____ related to ____ the final good or service:
a. inversely; demand for b. directly; demand for c. directly; supply of d. not; supply of
If a central bank is independent,
a. it has the ability to alter taxes. b. it allocates savings to firms. c. it restricts trade to increase domestic employment. d. it operations are not controlled by the political process.
Generally speaking, as more of a particular good is purchased, a consumer's marginal utility
A. increases and total utility decreases. B. decreases and total utility increases. C. increases and total utility increases. D. decreases and total utility decreases.
In the IS-LM model when government spending rises, in short-run equilibrium, in the usual case, the interest rate ______ and output ______.
Fill in the blank(s) with the appropriate word(s).