In considering the holding period return, the longer the term of the bond the:
A. less important is the coupon rate and the more important is the current yield.
B. less important is the capital gain.
C. more important is the capital gain.
D. less important is the capital gain and the more important in the current yield.
Answer: C
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As the output produced by a firm increases, the average fixed cost:
a. continues to decline. b. initially increases, and then declines. c. quickly drops to zero. d. becomes constant. e. declines and finally becomes negative.
During this century, the growth rate of real GDP in the United States has averaged approximately
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In the above figure, suppose that the government sets a limit to production at 10 units of output and the price rises to $4. In comparison to a competitive market the consumer surplus would fall by
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