Which of the following is correct?
a. Some bonds have terms as short as a few months.
b. Because they are so risky, junk bonds pay a low rate of interest.
c. Corporations buy bonds to raise funds.
d. All of the above are correct.
a
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"Plowback" is a preferred source of financing a corporation because
a. it is fairly easy, compared to issuing stocks. b. it is not subject to double taxation. c. selling bonds involves the high cost of money. d. stock markets are subject to random walks.
Critics of supply-side economics claim that the economic growth in the 1980s was a direct result of ______.
a. a large budget deficit b. deflation c. tax cuts d. tax increases
As the unemployment rate decreases in response to the economy moving toward capacity output, the aggregate price level
A. falls at an increasing rate. B. is stable. C. rises. D. falls at a declining rate.
Refer to the cost and demand data below for a pure monopolist. Suppose that this monopoly is subjected to a regulatory commission. If the commission seeks to achieve the most efficient allocation of resources for this industry, it should set the socially optimal price at:
A. P1
B. P2
C. P3
D. 0