Default risk arises from the fact that
A) borrowers differ in their ability to repay in full the principal and interest required by a loan agreement.
B) the bond price drops when interest rates rise.
C) it is inherently riskier to wait for a capital gain than to receive an immediate interest payment.
D) interest rates are far more likely to go up than to go down.
A
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________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital
A) Rent is; wages are; interest is B) Rent is; interest is; wages are C) Interest is; wages are; profit is D) Mortgages are; interest is; wages are E) Rent is; wages are; profit is
Starting from a situation where country A which exports good S and imports good T has a larger trade triangle than country B, explain how the process of reciprocal demand leads to international trade equilibrium
What will be an ideal response?
A small number of firms competing with each other is characteristic of: a. monopolistic competition. b. perfect competition
c. oligopoly. d. monopoly.
Which of the following is an example of a measure of labor productivity?
A. Factory workers produce 100 units of TVs per worker per day. B. Autos get 20 gallons to the mile. C. Wages increase by 3 percent per year for 5 years. D. A household's income increased by 3 percent last year.