Which of the following would not be an example of a secondary financial market transaction?
A. You call a broker and purchase a U.S. Treasury bond.
B. You go to the bank and purchase a $5,000 certificate of deposit.
C. You call a broker and purchase 100 shares of McDonalds Corp. stock.
D. You call a broker and purchase a bond issued by General Motors.
Answer: B
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If a car salesman is paid a fixed commission when he sells a car, the owner is most likely to see
a. Large margins on sales b. Low margins on sales c. No sales d. None of the above
Historically, consumption spending in the United States has _____
a. fluctuated greatly with changes in the level of income b. remained approximately constant as a percentage of income c. decreased as a percentage of income d. varied inversely with the inflation rate e. varied inversely with the interest rate
A decrease in the price level in an economy implies that _____
a. the spending multiplier will be equal to the marginal propensity to consume b. there will be an increase in investment c. there will be a decrease in investment d. the value of the spending multiplier will be equal to one e. the value of the spending multiplier will be equal to zero
Elizabeth is the owner of a small business, and she is 35 years old. She doesn't smoke cigarettes, and she often spends her weekends with her family camping at the local state park. According to public choice theory, which of the following four politicians for a public office would Elizabeth be most likely to vote for in the upcoming election?
a. Politician A proposes increasing the tax on small businesses and using the money to provide additional benefits for the elderly. b. Politician B proposes increasing the tax on small businesses and using the money to improve the camping facilities at the state park. c. Politician C proposes increasing the excise tax on cigarettes and using the money to improve the camping facilities at the state park. d. Politician D proposes increasing the excise tax on cigarettes and using the money to provide additional benefits for the elderly.