Which of the Following Is Not a Nonsensical Headline

question 144

Multiple Choice

Which of the following is not a nonsensical headline?

• A)British perpetuities about to mature.
• B)Disney issues new bonds with term of 7 percent.
• C)Corporate bonds currently pay higher interest rates than government bonds.
• D)Standard and Poor's judges new junk bond to have very low credit risk.

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Definitions:

Lerner Index

A measure of a firm's market power and pricing strategy, defined as the difference between price and marginal cost, scaled by price.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service changes significantly in response to price changes.

Inelastic Demand

Describes a situation where the demand for a product does not change significantly in response to a change in the product's price.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs, strict regulations, or strong brand loyalty.