Which of the following bonds are considered to be default-risk free?
A) municipal bonds
B) investment-grade bonds
C) U.S. Treasury bonds
D) junk bonds
C
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Refer to Table 2-14. What is Scotland's opportunity cost of producing one guitar?
A) 0.25 motorcycles B) 4 motorcycles C) 12 motorcycles D) 16 motorcycles
________ in the foreign interest rate causes the demand for domestic assets to shift to the left and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
The consumption function will shift for all of the following reasons except:
A. a change in a household's real assets. B. a change in interest rates. C. expectations of price changes. D. changes in a household's disposable incomes.
If the government wishes to correct the existence of a negative externality, it could
A) grant subsidies to consumers to stimulate demand. B) impose a tax on the producers to reduce supply. C) impose taxes on consumers to stimulate demand. D) grant subsidies to producers to reduce supply.