Which of the following bonds would have the highest default risk?
A) municipal bonds
B) investment-grade bonds
C) U.S. Treasury bonds
D) junk bonds
D
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
A put option gives the owner the
A) right to sell the underlying security. B) obligation to sell the underlying security. C) right to buy the underlying security. D) obligation to buy the underlying security.
Voluntary restraint agreements are
A) a type of tariff in which the tax is a fixed amount per unit of good imported. B) a type of tariff in which the tax is based on the value of the good. C) a type of quota that actually benefits the firms facing the restrictions. D) a type of quota agreed to "voluntarily" in order to prevent more severe protection of another type.
The World Bank was created to help finance economic development in poor countries
a. True b. False Indicate whether the statement is true or false