The risk spread on bonds fluctuates mainly because:
A. taxes tend to increase over time.
B. new information about a borrower's financial condition becomes available.
C. bond rating agencies are often inconsistent.
D. people do not change their attitudes towards risk quickly.
Answer: B
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List four government expenditure programs designed to redistribute income
What will be an ideal response?
Demand price elasticity is measured by the:
a. percentage change in income / percentage change in price. b. percentage change in quantity demanded / percentage change in income. c. percentage change in price / percentage change in quantity demanded. d. percentage change in quantity demanded / percent change in price. e. percentage change in total revenue / percentage change in price.
The velocity of money is:
a. money supply divided by prices. b. spending divided by output. c. required monetary reserves divided by income. d. GDP divided by the money supply.
Suppose a firm's technology is represented by the Cobb-Douglas production function F(L, K) = 5LK. The wage rate is $50 and the rental rate of capital is $10. What is the least-cost combination to produce 100 units of output?
What will be an ideal response?