The holding period return on a bond:
A. will be less than the yield to maturity if the bond is sold for more than face value.
B. can never be more than the yield to maturity.
C. will equal the yield to maturity if the bond is purchased for face value and sold at a lower price.
D. will be less than the yield to maturity if the bond is sold for less than face value.
Answer: D
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A real cost of tariffs and quotas that is difficult to measure is that they
A) encourage rent seeking. B) shift income from consumers to producers. C) limit the quantity of imports. D) reduce wages. E) cause deflation.
When the government pays for childhood vaccinations, it is
A. subsidizing an external benefit. B. using taxes to discourage an external cost. C. internalizing an external cost. D. using direct regulation to discourage an external cost.
Fiscal policy is enacted through changes in:
A. Interest rates and the price level B. The supply of money and foreign exchange C. Unemployment and inflation D. Taxation and government spending
Political creative destruction is likely to be opposed:
A) equally in all types of economies. B) more in a market economy than in a command economy. C) more in an economy with inclusive institutions than in an economy with extractive institutions. D) less in an economy with inclusive institutions than in an economy with extractive institutions.