Bonds sold by the U.S. government that offer a certain real interest rate are known as
A) zero-coupon bonds.
B) Treasury Inflation-Protected Securities.
C) denominalized securities.
D) savings bonds.
B
You might also like to view...
According to the new Keynesian school of thought, fiscal policy is a completely ineffective tool in combating supply-side shocks
a. True b. False Indicate whether the statement is true or false
What is the disadvantage of using expenditure-based fiscal policy?
What will be an ideal response?
Farmer Jones bought his farm for $75,000 in 1975. Today the farm is worth $500,000, and the interest rate is 10 percent
ABC Corporation has offered to buy the farm today for $500,000 and XYZ Corporation has offered to buy the farm for $530,000 one year from now. Farmer Jones could earn net profit of $15,000 (over and above all of his expenses) if he farms the land this year. What should he do? A) Sell to ABC Corporation. B) Farm the land for another year and sell to XYZ Corporation. C) Accept either offer as they are equivalent. D) Reject both offers.
When an innovation spreads among producers, the earlier adopters enjoy longer-lived streams of profit before the market reaches its new long-run equilibrium
Indicate whether the statement is true or false