The most common form of zero-coupon bonds found in the United States is:
A. municipal bonds.
B. AAA rated corporate bonds.
C. 30-year U.S. Treasury bonds.
D. U.S. Treasury bills.
Answer: D
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According to the graph shown, if the economy were to open to free trade, it would become:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. a net-importer.
B. a net-exporter.
C. an autarky.
D. less efficient with less overall market surplus.
Athos, Porthos,and Aramis each like to take fencing lessons. The price of a fencing lesson is $10 . Athos values a fencing lesson at $15, Porthos at $13, and Aramis at $11 . Suppose that if the government taxes fencing lessons at 50 cents each, the price rises to $10.50 . A consequence of the tax is that consumer surplus shrinks by
a. $1.50 and tax revenues increase by $1.50, so there is no deadweight loss. b. $9.00 and tax revenues increase by $1.50, so there is a deadweight loss of $7.50. c. $7.50 and tax revenues increase by $7.50, so there is no deadweight loss. d. $7.50 and tax revenues increase by $1.50, so there is a deadweight loss of $6.
Which of the following is true of the paradox of thrift?
a) The paradox of thrift occurs when investment is not related to income. b) The paradox of thrift occurs when households intend to save less. c) The paradox of thrift causes consumers to save less. d) The paradox of thrift occurs when households intend to consume more
Peruvian economist Hernando de Soto claims the ________ in Latin America results in "dead capital."
A. strong titling system B. generally weak currencies C. general lack of strong national defense D. weak titling system