Which of the Following Is Least Likely to Be the Case

question 122

Multiple Choice

Which of the following is least likely to be the case?

• A)Food stamps encourage the production of more food.
• B)Housing subsidies encourage the production of additional housing.
• C)Medicare changes the mix of output away from medical services.
• D)Student loans change the mix of output in favor of educational services.

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Definitions:

Annual Interest Payment

The total amount of interest paid over one year on a loan, bond, or other financial instrument.

Debtor To Creditor

A financial ratio that compares the amount of debt a company owes to the amount it owes to creditors; often used to evaluate a company's financial leverage.

Yield To Call

The yield to call is the return an investor would receive if they held a bond until its call date, when the issuer has the option to repay the bond before its maturity date at a specified price.

Nominal Yield

The yearly interest income from a bond or fixed-income security, expressed as a percentage of the bond's face value.