Compared to short-term bonds, other things the same, long-term bonds generally have
a. more risk and so they pay higher interest rates.
b. less risk and so they pay lower interest rates.
c. less risk and so they pay higher interest rates.
d. about the same risk and so they pay about the same interest rate.
a
You might also like to view...
Which of the following is a problem in pursuing monetary policy?
A) The lag between a change in the quantity of money and its effect on economic activity may be long. B) The Fed must reveal to the public anytime the Fed changes its policy. C) Monetary policy must be approved by the Congress. D) The Fed cannot control the federal funds rate. E) None of the above answers is correct.
Which of the following topics is not a part of a typical scenario plan?
a. Aging populations. b. Immigration and emigration. c. Informatics. d. Cash flows. e. All the above are a part of a typical scenario plan.
Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If hiring another worker would increase output by five units per hour, then to maximize profits the firm should
A) hire the additional worker. B) lay off some of its workers. C) not change the number of workers it currently hires. D) There is not enough information to answer the question.
Based on the Taylor rule, from 1965 to 1979, monetary policy was
A) too tight. B) too easy. C) just about right. D) too tight from 1965 to about 1970 and too easy from about 1970 to 1979.