A nation's country-risk premium increases if:
a. Expected inflation becomes harder to predict.
b. The average maturity structure in the nation rises.
c. None of the above
d. Central bank policies become more predictable.
e. All of the above.
.A
Economics
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If people expect an inflation rate of 3.3 percent, and the real interest rate is 3 percent, the nominal interest rate equals (approximately)
A) 0.3 percent. B) 8.6 percent. C) 6.3 percent. D) 9.9 percent.
Economics
If Pearl is a risk averse, then
A) expected utility has nothing to do with her choices. B) she does not have diminishing marginal utility of wealth. C) she will not buy insurance. D) risk is costly to her.
Economics