A bond that pays a high interest rate

A. is more secure than one that pays a low interest rate.
B. is guaranteed by the U.S. government.
C. reflects the higher risk that the issuer will default.
D. will sell for a high price.


Answer: C

Economics

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Good weather is an example of a natural condition that affects supply for salmon fishing.

Select whether the statement is true or false. A. True B. False

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If the steady-state unemployment rate for an economy is 5% and each period 2% of employed workers lose their jobs, what percent of unemployed workers find employment each period?

A. 28% B. 38% C. 48% D. 8% E. 18%

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In the long run, a perfect competitor

A) earns positive profits but will not make losses. B) earns positive economic profits. C) earns zero economic profits. D) produces at its shutdown point.

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(Consider This) The U.S. recession that occurred in 2008 and 2009 represented a case where:

A. government policy intervention effectively offset the negative demand shock and minimized the effects on output and employment. B. prices were somewhat flexible, so the impact of the demand shock was felt about the same in terms of price and output changes. C. prices were relatively flexible, minimizing the impact on total output and employment. D. prices were relatively sticky and most of the impact was on total output.

Economics