Bonds with ________ tend to have higher interest rates than bonds with ________
A) high liquidity; low liquidity
B) high default risk; low default risk
C) shorter maturity; longer maturity
D) low tax burdens on their interest; high tax burdens on their interest
B
You might also like to view...
If the demand for a good is elastic, when the price increases, the
A) demand will decrease. B) quantity demanded will increase. C) quantity demanded will decrease by a smaller percentage than the price increased. D) quantity demanded will decrease by a greater percentage than the price increased.
Suppose that the Fed announces a low-money-growth policy to control inflation and workers sign low-wage contracts as a result. If instead, the Fed had implemented a high-money-growth policy, which of the following would not occur?
a. The unemployment rate would increase. b. The Fed's stated policy would be time inconsistent. c. The unemployment rate would be less than the natural rate. d. The Fed would not achieve credibility through its actions. e. The rate of inflation would be higher than expected.