What is the function of risk premium?
A. To compensate bondholders for the chance the borrower will not repay the loan.
B. To raise the return to holding government bonds.
C. To make sure that the value of the bond rises with inflation.
D. To distinguish short from long-term bonds.
Answer: A
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Resource-Advantage Theory developed by Shelby Hunt includes the ideas of family competence or household competence and that __________ is part of family resource management
a. Competition b. Cooperation c. Companionship d. Cognition
Using the standard 45-degree line diagram, how does a decrease in net exports effect the expenditure schedule?
a. It increases the slope of the expenditure schedule. b. It decreases the slope of the expenditure schedule. c. It shifts the expenditure schedule upward. d. It shifts the expenditure schedule downward.
The ________ the interest rate (discount rate) or the ________ the payment is to be received, the smaller the present value of a future payment will be
a. lower, nearer to b. lower, further into c. higher, nearer to d. higher, further into
Monopolistic competition is inefficient because:
A. firms earn positive economic profits. B. the firms' marginal costs and marginal revenues are not equal. C. firms have excess capacity in the long run. D. entry is difficult.