Why may investors buy a Treasury bill with a negative real interest rate?
A) fear of rising inflation
B) concern about high yields on other bonds
C) fear of default by the U.S. government
D) concern about the high default risk of alternative investments
D
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Under the Global Legal Settlement of 2002, the provision that requires, for a period of five years, brokerage firms to contract with independent research firms to provide information to their customers is an example of
A) regulate for transparency. B) supervisory oversight. C) separation of functions. D) socialization of information production.
What is unemployment and what is the unemployment rate? What are the costs of unemployment?
What will be an ideal response?
Which of the following is not characteristic of imperfect competition?
A) homogeneous products B) barriers to entry C) few buyers and sellers D) Both A and C
Suppose an industry trade group has convinced legislators that a price floor should be used so that producer surplus is maximized in the market for milk. The group argues that such a policy would save the "family farm." Assuming a downward-sloping linear demand curve and a horizontal long-run supply curve, determine the resulting price, output and social welfare from such a policy. Compare this
result to the competitive equilibrium. What will be an ideal response?