Suppose the private bond rating agencies ceased to exist. What would be the impact on the bond market?
What will be an ideal response?
If the private bond rating agencies ceased to exist, the information available to investors on the default risk of bond's would decline. The risk premium would increase, bond yields would rise, and some firms might find they were unable to raise funds on the bond market.
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Since business firms will undertake a project whose rate of return exceeds the present level of interest rates, when interest rates
A) rise planned investment rises, ceteris paribus. B) fall planned investment falls, ceteris paribus. C) rise planned investment does not change. D) rise planned investment falls, ceteris paribus.
Suppose the per capita GDP of Petrovia was $2 million in 1966 . If it grows at an annual rate of 8 percent per year, its per capita GDP after 2 years will be _____
a. $2.3 million b. $9.8 million c. $15.5 million d. $5.1 million
In economic terminology, when a resource is used to produce output it is referred to as
A. a fifth element. B. a factor of production. C. an intangible. D. a service.
Real per capita GDP in the United States in 2012 was approximately:
A. $13,300. B. $39,800. C. $43,900. D. $13.3 trillion.