Which of the following statements about the characteristics of debt and equities is TRUE?
A) They can both be long-term financial instruments.
B) Bond holders are residual claimants.
C) The income from bonds is typically more variable than that from equities.
D) Bonds pay dividends.
A
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As Americans have become more health conscious, rules about food labels have become more complex and stringent. This is an example of government acting as
A. referee. B. redistributor. C. taxer. D. defender.
A Treasury expenditure financed through borrowing from the Federal Reserve will cause the money supply
A) and bank reserves to rise by an equal amount. B) and bank reserves to fall by an equal amount. C) to rise but bank reserves to rise by a greater amount. D) to rise by a greater amount than the rise in bank reserves.
Is it possible to have economic growth with no opportunity cost? a. Yes, economic growth requires no current sacrifices-only the passage of time
b. No, but economic growth is always worth whatever sacrifice is required. c. No, because growth depletes the stock of knowledge so that more growth today means less growth tomorrow. d. No, because growth requires the sacrifice of consumption goods in order to invest in such things as capital formation and research and development.
The correct chain of causation illustrating the changes caused by monetary policy is
a. money, interest rates, C + I + G + (X ? IM), I. b. money, interest rates, I, C + I + G + (X ? IM). c. C + I + G + (X ? IM), I, interest rates, money. d. I, C + I + G + (X ? IM), money, interest rates.