Which of the following is most likely to cause interest rates to fall?
A) Government borrows to finance a war.
B) All firms project higher future revenue streams for all of their projects.
C) All firms project lower future revenue streams for all of their projects.
D) Government institutes a high tax on savings.
C
You might also like to view...
A typical supply curve has
A. slope equal to zero. B. slope equal to infinity. C. negative slope. D. positive slope. E. constant slope.
What's another term for "positive externality"?
A) Negative externality B) Spillover cost C) Spillover benefit D) The "pay-as-you-go" principle
Refer to Figure 17-2. Suppose the economy is at point B in the figure above. Which of the following is true?
A) The economy is producing at potential GDP. B) The current unemployment rate is 5%. C) Expected inflation and actual inflation are the same. D) The expected rate of inflation is 3%. E) The natural rate of unemployment is 3.8%.
Generally with bond ratings, the higher the rating, the ________ the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default
A) higher; higher B) lower; lower C) higher; lower D) lower; higher