The primary risk that bondholders face is that:
A. The bond will reduce in price
B. The bond issuer will default
C. Inflation will decrease
D. The rate of return will increase
B. The bond issuer will default
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An economic principle that explains why people pursue different occupations is
A) NAFTA. B) international trade. C) absolute advantage. D) comparative advantage.
What are the biggest advantages the U.S. has over the EU in terms of being an Optimum Currency Area?
A) low mobility of labor, higher labor productivity, lower level of intra-regional trade B) high unionization of U.S. Labor force C) high mobility of labor force, more transfer payments between regions D) higher uniformity of population's taste in consumption E) more specialized labor force and natural resource advantages