Which of the Following Examples Comes Close to the Ideal

question 57

Multiple Choice

Which of the following examples comes close to the ideal of responsible party government?

• A) the U.S. national government
• B) U.S. state governments
• C) U.S. municipal governments
• D) some European democracies

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Definitions:

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, the purchasing power of currency is falling.

Pure Rate

The interest rate exclusive of all other elements such as risk premium, inflation, or other costs often considered the real rate of interest with no adjustments.

Default Risk Premium

The additional yield that a borrower must offer to compensate lenders for the risk that the borrower may fail to make required payments.

Corporate Bond

A type of debt security issued by corporations to finance their operations, projects, or expansion plans.