In Equilibrium,interest Rates on Different Assets Will Differ for All

question 34

Multiple Choice

In equilibrium,interest rates on different assets will differ for all of the following reasons,except for differences in _____.

• A)the risks associated with the asset
• B)the asset prices
• C)the duration of the loan
• D)the tax treatment of the investment

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Definitions:

FICA Medicare

Part of the U.S. payroll tax, specifically aimed at funding Medicare, a federal health insurance program for people aged 65 and older, and some younger individuals with disabilities.