A corporation is often financed through stocks and bonds.
Answer the following statement true (T) or false (F)
True
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Which of the following best describes real GDP?
A) Real GDP = Potential GDP - Nominal GDP B) Real GDP = Potential GDP + Deviation from potential GDP C) Real GDP = Deviation from potential GDP / Potential GDP D) Real GDP = Nominal GDP / Potential GDP
Purchasing power parity suggests that
a. Given fixed prices, interest rates adjust so that a good costs the same across two countries b. Given fixed exchange rates, prices adjust such that a good costs the same across two countries c. All of the above d. None of the above
Which of the following statements is true?
a. The national debt as a percentage of GDP is greater today than during any other period in our nation's history. b. A sizeable external national debt will transfer purchasing power away from foreigners to domestic citizens. c. Keynesian theory assumes a total crowding out effect associated with deficit spending. d. U.S. national debt is 12 times its size in 1980.
A bank's assets are
A) things owned by or owed to the bank. B) things the bank owes to someone else. C) a measure of the bank's net worth. D) always greater than the bank's liabilities.