According to the liquidity premium theory
A) investors prefer longer to shorter maturities.
B) investors prefer shorter to longer maturities.
C) investors are indifferent between short and long maturities.
D) investors are more interested in the tax treatment of bonds than they are in the liquidity of bonds.
B
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The phenomenon of underutilization of labor during a recession is called
A) labor stockpiling. B) investing in human capital. C) labor force stabilization. D) labor hoarding.
A change in the supply of one factor of production
a. will not change either the marginal productivities or the prices of other factors. b. will not change the prices of other factors, but it may change their marginal productivities. c. will not change the marginal productivities of other factors, but it may change their prices. d. changes the marginal productivities and the prices of other factors.