The rate of return that financial investors require to hold a risky asset minus the rate of return on a safe asset is called the:
A. risk premium.
B. real interest rate.
C. nominal interest rate.
D. discount rate.
Answer: A
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The law of supply can be stated as all else equal:
A. quantity supplied rises as price falls. B. quantity supplied rises as price rises. C. quantity supplied rises as income rises. D. quantity supplied rises as income falls.
Joanne left her last? job, in which she was earning? $50,000, in order to form her own consulting business. Her revenues for the first year of consulting were? $210,000. During that? year, she hired two assistants for? $25,000 each and spent? $25,000 on office equipment. In? addition, she incurred? $75,000 in miscellaneous expenses. Her accounting profit that first year was
A) $10,000. B) $60,000. C) $210,000. D) $50,000.
in recent decades labor markets in European countries like italy and spain have been
What will be an ideal response?
Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A. The United States does not have an absolute advantage in the production of either good. B. Mexico has an absolute advantage in the production of machinery. C. The United States has an absolute advantage in the production of both goods. D. The United States has a comparative advantage in the production of machinery.