Multiple Choice
The risk premium is the:
A) extra rise in interest rates when the Federal Reserve identifies an output gap.
B) extra interest charged by lenders to account for risk.
C) risk-free rate of interest.
D) federal funds rate.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q14: In the IS-MP framework, starting from macroeconomic
Q15: For each of the following scenarios, identify
Q16: In June 2019, India imposed a tariff
Q17: How do interest rates affect consumption in
Q18: What is the relationship between higher interest
Q20: When the perceived financial risk rises in
Q21: If the nominal rate of interest is
Q22: What is the relationship between lower interest
Q23: If potential GDP is $17.65 trillion and
Q24: If Y > AE:<br>A)there will be a