Question 1 (1 point) Saved What would cause the interest rate on Bond A to be lower than the interest rate on Bond B if the two bonds were otherwise identical in their characteristics? The credit risk associated with Bond A is lower than the credit risk associated with Bond B. Bond A was issued by the Apple corporation and Bond B was issued by the city of Houston. Bond A has a term of 20 years and Bond B has a term of 2 years. All of the above are correct. Question 2 (1 point) Saved Figure 969-369 8 Domestic Demand Domestic Supply 7 6 6 PRICE (Dollars per rose) 4 World Price Tarif 3 2 World Price 100 200 300 400 500 600 700 800 QUANTITY (Roses) Refer to Figure 969-369. With trade and without a tariff, the domestic price is equal to the world price roses are sold at $4 in this market. there is a shortage of 400 roses in this market. this country imports 200 roses. Question 3 (1 point) Saved Zanzibar's standard of living most importantly depends on its level of capital the number of hours worked its availability of natural resources O its productivity Question 4 (1 point) Since its inception, the Fed has been unable to control the money supply because 100-percent-reserve banking system in the United States makes it difficult for the Fed to carry out its monetary policy the Fed has to get the approval of the U.S. Treasury Department whenever it uses any of its monetary policy tools. the Fed does not have a tool that it can use to change the money supply by either a small amount or a large amount. the Fed does not control the amount of money that households choose to hold as deposits in banks. in Danks. Question 5 (1 point) In Colombia the nominal exchange rate e is foreign currency per Colombian peso, the domestic price is P, and the foreign price is P, then the real exchange rate is defined as O repeyp. (eP)/p Oe+P"/p. O e-p/P Question 6 (1 point) Margo Robbie, a highly paid actress, should probably not trim her own bushes because her opportunity cost of trimming her bushes is higher than the cost of paying someone to trim it for her. she has a comparative advantage in trimming bushes relative to a landscaping service. she has an absolute advantage in trimming her bushes relative to a landscaping service. she might sprain her ankle