Many savers are willing to accept a lower interest rate on municipal bonds than on comparable instruments because
A) the after-tax yield on municipal bonds is greater.
B) municipal bonds invariably have lower default risk.
C) municipal bonds are more liquid than most other instruments.
D) the yield on municipal bonds is considered inflation proof.
A
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Thrift institutions
A) include commercial banks and investment firms. B) include credit unions but not savings and loan associations. C) do not offer transaction deposits. D) receive most of their funds from the public's savings deposits.
Refer to Figure 7-1. Marginal private benefit is represented by which curve?
A) D2 B) Supply C) D1 D) All of the above represent marginal private benefit.
Large countries tend to be more open than small countries
Indicate whether the statement is true or false
When an economy is producing inside its production possibility frontier,
A. production inefficiency occurs. B. it is efficient so long as it is producing what people want. C. only technological advances will allow it to increase production. D. it must overcompensate by producing outside the curve to achieve efficiency.