If lenders anticipate no changes in liquidity, information costs, and tax differences, the yield on a risky security should be
A) greater than that on a safe security and the price of a risky security should also be greater than that of a safe security.
B) less than that on a safe security and the price of a risky security should also be less than that of a safe security.
C) greater than that on a safe security and the price of a risky security should be lower than that of a safe security.
D) less than that on a safe security and the price of a risky security should be greater than that on a safe security.
C
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Regarding U.S. antitrust activity, the rule of reason was expressed in the
a. Standard Oil case. b. Robinson-Patman Act. c. Clayton Act. d. ALCOA case.
Economic growth is measured by the percentage change in: a. potential nominal GDP
b. structural unemployment. c. the rule of 72. d. potential real GDP (LRAS).
Which of the following can a country increase in the long run by increasing its money growth rate?
a. the nominal wage. b. real output. c. real interest rates. d. the real wage.
Capital income includes:
A. capital gains from stock sales. B. profits, rent, and interest. C. wages and salaries. D. earnings of the self-employed.