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Question
Which of the following statements are TRUE?A. A decrease in default risk on corporate bonds lowers the demand for these bonds, but increases the demand for default-free bonds.
B. The expected return on corporate bonds decreases as default risk increases.
C. A corporate bond's return becomes less uncertain as default risk increases.
D. As their relative riskiness increases, the expected return on corporate bonds increases relative to the expected return on default-free bonds.
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
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B. U.S. Treasury.
C. Federal Reserve System.
D. Bureau of Monetary Affairs.
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A. balanced budgets.
B. rapidly growing money supplies.
C. falling money supplies.
D. constant money supplies.
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A. exchanges.
B. banks.
C. over-the-counter markets.
D. finance companies.
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Banks, savings and loan associations, mutual savings banks, and credit unions
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D. produce nothing of value and are therefore a drain on society's resources.
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Which of the followings does NOT describe the goods market in the ISLM model?
A. consumption function
B. investment function
C. government spending and tax
D. money demand function
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An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________.
A. IS; right
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Q:
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Q:
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D. advocated by activists.
Q:
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B. the Lucas critique.
C. public choice theory.
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Q:
The Lucas critique indicates that
A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
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Q:
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Q:
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Q:
Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
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Q:
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