Long-term bonds are
a. riskier than short-term bonds, and so interest rates on long-term bonds are usually lower than interest rates on short-term bonds.
b. riskier than short-term bonds, and so interest rates on long-term bonds are usually higher than interest rates on short-term bonds.
c. less risky than short-term bonds, and so interest rates on long-term bonds are usually lower than interest rates on short-term bonds.
d. less risky than short-term bonds, and so interest rates on long-term bonds are usually higher than interest rates on short-term bonds.
b
You might also like to view...
Which of the following models depicts the role of money as affecting only the price level in the short run?
a. The new classical model b. The Keynesian model c. The real business cycle model d. The monetarist model
Joslynn decreases her consumption of Good A after the price of Good B decreased. For Joslynn
A. Good A is an inferior good. B. Good A and Good B are substitutes. C. Good A and Good B are complements. D. Good B is an inferior good.
The crowding-out effect is
A. the tendency of contractionary fiscal policy to cause an increase in planned investment but a decrease in planned consumption in the private sector. B. the tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the private sector. C. the tendency of expansionary fiscal policy to cause an increase in planned investment but not in planned consumption in the private sector. D. the tendency of contractionary fiscal policy to cause an increase in planned investment or planned consumption in the private sector.
Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two.
A. Which point(s) on the graph is (are) efficient production possibilities? B. Which point(s) on the graph show unemployment of resources? C. What is the opportunity cost of moving from point R to point Q? D. What is the opportunity cost of moving from point T to point R?