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Author Question: Why might voters tend to be relatively uninformed about political ... (Read 35 times)

tsand2

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on: Jun 30, 2018
Why might voters tend to be relatively uninformed about political issues?

Question 2

An Australian investor buys a U.S. Treasury bond that has a price of 10,000 . pays 5 percent interest, and matures in a year. Between the purchase date and the maturity date, the exchange rate changes from 1 = AUD 5.0 to 1= AUD 5.2 . What will be the Australian investor's rate of return from the U.S. bond?
 a. 4 percent
  b. 7 percent
  c. 9.2 percent
  d. 12 percent
  e. 25 percent


alexisweber49

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Individuals act in their own self-interest. Voters will gather information as long as the costs of gathering that information do not exceed the benefits to them. Voters may be relatively uninformed about political issues because of high costs and low personal benefits of being politically informed.

Answer to Question 2

c


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