Short-Term Bonds Are Generally

question 31

Multiple Choice

Short-term bonds are generally

• A)less risky than long-term bonds and so they feature higher interest rates.
• B)less risky than long-term bonds and so they feature lower interest rates.
• C)more risky than long-term bonds and so they feature higher interest rates.
• D)more risky than long-term bonds and so they feature lower interest rates.

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Definitions:

Marginal Workers

Individuals who are employed in a job that does not fully utilize their skills or capabilities, often due to economic fluctuations or lack of available positions.

Real Wages

Wages adjusted for inflation, representing the true purchasing power of income earned from labor.

Productivity

A measure of the efficiency of production, often evaluated as the ratio of output to input in the production process.

Income Effect

The change in individuals' consumption patterns due to an increase or decrease in their income, affecting their purchasing power.