Because of differences in tax treatment, municipal bonds pay a higher interest rate than do corporate bonds
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
If the U.S. interest rate differential rises, then the effect in the foreign exchange market on the demand for dollars is that the
A) demand for dollars decreases. B) quantity of dollars demanded decreases. C) quantity of dollars demanded increases. D) demand for dollars increases. E) demand for dollars does not change and the quantity of dollars demanded also does not change.
The paradox of value refers to the fact that
A) different consumers value the same items differently. B) the value of a good depends on its total utility. C) water costs little, while diamonds cost a lot. D) water brings little consumer surplus.
Suppose a negative externality exists in a market. If transactions costs are low and parties are willing to bargain then, according to the Coase theorem
A) an efficient solution can be reached only if property rights are assigned to the polluters. B) government intervention is critical to reach an efficient solution. C) an efficient solution can be reached only if property rights are assigned to the victims of the pollution. D) an efficient solution can be reached regardless of the initial assignment of property rights.
The ______________ level of production occurs when the externality is fully internalized and can be _____________ over time as we develop better pollution control technologies.
a. minimum; increased b. minimum; reduced c. optimal; increased d. optimal; reduced e. market; reduced