The risk-free rate is not:
A. usually approximated by interest rates on U.S. government debt.
B. the interest rate at which one would lend if there were no risk of default.
C. lower than any other interest rate.
D. usually approximated by interest rate on corporation debts.
D. usually approximated by interest rate on corporation debts.
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Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico in 2005. This drove up the prices of natural gas, gasoline, and heating oil. This is an example of a
A) supply shock. B) demand shock. C) negative externality. D) depression.
When compared with China, the growth of clothing exports originating in Bangladesh clearly illustrates the Ricardian model of comparative advantage. Discuss and explain
What will be an ideal response?