Bonds ________ and stocks ________
A) always pay interest payments forever; always pay dividends forever
B) have a fixed number of interest payments; have a fixed number of dividend payments
C) may pay interest payments forever; have a fixed number of dividend payments
D) have a fixed number of interest payments; may pay dividends forever
D
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With regard to preventing entry, if identical firms act simultaneously,
A) they cannot credibly threaten each other B) they will all incur losses C) only one firm will enter the market D) none of them would enter the market
To get a profit-maximizing firm in a perfectly competitive labor market to hire another worker, the firm will need to
A. raise the wage rate paid to the last worker hired only. B. lower the wage rate paid to the last worker hired only. C. raise the wage rate paid to that last worker hired and also to all previous workers hired. D. lower the wage rate paid to that last worker hired and also to all previous workers hired.
When the economy is operating at a level of real GDP that is greater than its potential level, we know that
A) the structural rate of unemployment is negative. B) the frictional unemployment is zero. C) the actual unemployment rate is greater than the natural rate of unemployment. D) the cyclical rate of unemployment is negative.
When there is an external cost, the unregulated market
A) overproduces the good or service. B) underproduces the good or service. C) reaches the most efficient solution. D) minimizes public welfare.