An interest rate spread is the difference between an interest rate on a risky asset and the corresponding interest rate on a risk-free treasury security.
Answer the following statement true (T) or false (F)
True
You might also like to view...
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Which of the following do economists consider to be capital?
A. a pair of stockings B. a share of IBM stock C. a construction crane D. a savings account
As a function of real GDP (real GDP being measured on the horizontal axis), autonomous investment is represented by a(n):
a. U-shaped curve. b. vertical line. c. positively sloped line. d. negatively sloped line. e. horizontal line.
Usury laws first originated in the United States in the 1970s in response to high market interest rates
Indicate whether the statement is true or false