In comparison to the situation in the late 1970s, the United States experienced lower nominal interest rates and higher real interest rates in the late 1990s
a. True
b. False
Indicate whether the statement is true or false
True
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If polluters are forced to pay for the cost of their pollution, they will reduce pollution toward a socially optimal amount.
Answer the following statement true (T) or false (F)
Securitization can not help financial intermediaries
A) diversify their portfolios. B) avoid bankruptcy. C) attract more investors to buy and hold their securities. D) decrease the cost of borrowing.
The opportunity cost of going to college for a student receiving a scholarship
A. is zero because she does not have to pay tuition. B. is the risk of dropping out. C. is the food and living expenses that she has to purchase while in college. D. is the income that she would have earned if she did not go to college.
When benefit-cost analysis is used to facilitate U.S. public policy decisions,
a. the discount rate is selectedby the individual policy maker b. no adjustment can be made for inflation, since the inflation rate is not known in advance c. the discount rate used should reflect the social opportunity cost of funds d. only incremental costs are adjusted for time differences