Payments to stockholders are called ______, and payments to bondholders are called _______

A bank charges one borrower (A) 8 percent interest per year and another borrower (B) 10 percent interest per year. Which of the following is a plausible reason for the higher interest rate for B?

A. A is borrowing the money for a longer period than B B. A is borrowing a larger amount than B C. B is using the money for a less risky project than A D. B has a better credit rating than A

Who actually benefits from a subsidy to sellers?

A. Only consumers benefit from any kind of subsidy. B. Only sellers benefit, since it is their subsidy. C. The benefit is shared depending on elasticity of the supply and demand curves. D. None of these statements is true.