Which fact about the term structure is the expectations theory able to explain?
A. Why long-term bonds usually are less liquid than short-term bonds with the same defaultrisk.
B. Why longer-term yields tend to be higher than shorter-term yields.
C. Why interest rates on bonds with different terms to maturity tend to move together over time.
D. Why yields on short-term bonds are more volatile than yields on long-term bonds.
Answer: A
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Although the dominance of ________ over ________ is clear in all countries, the relative importance of bond versus stock markets differs widely
A) financial intermediaries; securities markets B) financial intermediaries; government agencies C) government agencies; financial intermediaries D) government agencies; securities markets
Reducing protectionism allows greater gains from free trade.
Answer the following statement true (T) or false (F)
In the above figure, the movement from point a to point b reflects
A) a decrease in the price of pizza.
B) an increase in the demand for pizza.
C) an increase in the number of people who eat pizza.
D) an increase in the price of the tomato sauce used to produce pizza.
E) a decrease in the number of firms producing pizza.
Total utility can be determined by: a. summing the marginal utilities of each unit of a good consumed
b. multiplying the marginal utility of the last unit consumed by the number of units consumed. c. multiplying the marginal utility of the first unit consumed by the number of units consumed. d. multiplying the price of the good times the number of units consumed.