The presence of a term spread that is usually positive indicates that:
A. bonds of similar risk but with different maturities are not perfect substitutes.
B. we should expect the yield curve to usually slope downward.
C. we should expect the yield curve to usually be flat.
D. the yield curve always slopes upward.
Answer: A
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The United States Mint is the only legal entity to produce circulating coinage for the United States. What are the barriers to entry, if any, that protect this firm from competition?
A) The United States Mint is a natural monopoly. B) The United States Mint has a government license to produce coinage. C) The United States Mint is a public franchise to produce coinage. D) The United States Mint has a patent or copyright to produce coinage.
What are the likely consequences of providing monetary incentives to politicians for good performance?
What will be an ideal response?
Consumers who will pay high prices to be among the first to own certain new products are called
A) gullible. B) naive consumers. C) savvy consumers. D) early adopters.
The lower the price of a foreign currency, the more expensive that foreign country's goods and services are to individuals in the domestic economy
a. True b. False