The interest rate on Baa corporate bonds is ________, on average, than interest rates on Treasuries, and the spread between these rates became ________ in the 1970s
A) lower; smaller
B) lower; larger
C) higher; smaller
D) higher; larger
D
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In a "liquidity trap,"
A) the demand for money is infinite. B) the LM curve is a vertical line. C) the nominal interest rate on short-term assets is relatively high. D) money supply changes have a strong impact on interest rates.
The VMP is the Value of Marginal Product.
A. True B. False C. Uncertain
A measure of how much debt an investor takes on in making an investment is referred to as
A) asset management. B) the debt-equity ratio. C) securitization. D) leverage.
When emissions are measured on the horizontal axis, the marginal cost of abating emissions is
A) downward-sloping because emissions become more and more easy to eliminate once the firm makes the initial commitment to do so. B) downward-sloping because a high level of emissions is cheap to attain, and a low level of emissions is expensive to attain. C) upward-sloping because emissions become more and more easy to eliminate once the firm makes the initial commitment to do so. D) upward-sloping because a high level of emissions is cheap to attain, and a low level of emissions is expensive to attain. E) horizontal because the technology to remove emissions is assumed constant.