Jerry has the choice of two bonds, one that pays 5 percent interest and one that pays 2 percent interest. Which of the following is most likely?
a. The 2 percent bond is more risky than the 5 percent bond.
b. The 5 percent bond is a U.S. government bond, and the 2 percent bond is a junk bond.
c. The 2 percent bond has a longer term than the 5 percent bond.
d. The 2 percent bond is a municipal bond, and the 5 percent bond is a U.S. government bond.
d
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Refer to Figure 27-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) a decrease in government purchases B) a decrease in income taxes C) a decrease in interest rates D) an increase in the money supply
What is the Term Auction Facility?
Porter developed ______ broad attributes of a nation that shape the environment in which local firms compete.
Fill in the blank(s) with the appropriate word(s).
The demand curve for labor of a monopolist
A. slopes upward because monopolists use more capital than do perfectly competitive firms. B. slopes down because of the law of diminishing marginal product and because the monopolist must lower prices to sell additional units of the good. C. is horizontal even though the demand curve for labor for a competitive firm is downward sloping. D. slopes down for the same reason as the demand curve for labor of a perfectly competitive firm.