Which of the following is true regarding bonds?
a. Other things equal, bondholders have greater financial security than stockholders.
b. The possibility of a bond's value increasing greatly is limited compared to stocks.
c. The legal obligation to bondholders is of higher priority than that of stockholders.
d. Higher market interest rates represent a risk to bondholders

Refer to Figure 3.6. Answer the following questions about the game represented in the figure:

a. What type of game is represented by the payoff matrix? b. Does Terrance have a dominant strategy, and if so, what is it? c. Does Phillip have a dominant strategy, and if so, what is it? d. At what outcome or outcomes do the players coordinate? e. Are there any Nash equilibria, and if so, what, are they?

With normally-sloped IS and LM curves, an increase in government spending ________ the interest rate, which ________ autonomous planned expenditure, resulting in a final increase in income ________ than what the government spending increase would

have produced in the Chapter 3 model. A) lowers, raises, greater B) lowers, lowers, greater C) raises, lowers, less D) raises, raises, less E) raises, raises, greater