Because of the Existence of the Energy Efficiency Gap, Many

question 15

Multiple Choice

Because of the existence of the energy efficiency gap, many economists recommend _________ to reduce mobile source emissions.

• A) increased taxation on gasoline
• B) stricter CAFE standards
• C) decreased taxation on new vehicles
• D) all of the above

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Definitions:

Yield to Maturity

The total return anticipated on a bond if held until it matures, considering all payments of interest and principal and the time value of money.

Par Value

The face value of a bond or stock, typically the value printed on the certificate, which does not necessarily reflect its market value.

Treasury Bond

Long-term government debt securities issued by the U.S. Department of the Treasury, with maturity periods typically ranging from 20 to 30 years, considered low-risk investments.

Annual Coupon

The yearly interest payment made by a bond issuer to its bondholders, usually fixed at the time of issuance.