The interest rate on long-term bonds is somewhat higher than suggested by the expectations theory because
A) the expectations theory doesn't account for taxes.
B) a risk premium exists.
C) an inflation premium must be added to long-term bonds.
D) the Fed can only control short-term interest rates.
B
Economics
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Fixed costs of entry create an advantage for potential entrants since incumbents have already made these expenditures while potential entrants can avoid these costs
Indicate whether the statement is true or false
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Do economists know the value of the MPC for most economies?
a. Yes, with a high level of precision. b. Yes, with a certainty level of four decimal places. c. No, it is impossible to determine a national MPC. d. Yes, but with some level of uncertainty.
Economics