In general, when people talk about investing, they mean that they:
A. have lent their money to someone who will use it to buy physical capital.
B. have put money in the stock market.
C. hold stocks or bonds.
D. All of these statements are true.
D. All of these statements are true.
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A potential problem arises in principal-agent relationships
a. because the agents' actions are not always observed by the principals b. because the principals' actions are not always observed by the agents c. because the agent's and the principals' actions are always observed by each other d. the observability of actions is irrelevant
The theory of the kinked demand curve is that
a. although the firm sells a differentiated product, too many competitors exist to make it worthwhile speculating on responses to the firm's behavior. b. freedom of entry will reduce profits to zero. c. a firm's competitors will follow it in a price decrease but not follow it in a price increase. d. firms are all seeking the position of joint profit maximization.
If the commercial is TRUE that every additional bite of food tastes as good as the first, the marginal utility from consuming more of the advertised product must be
A) increasing. B) decreasing. C) constant. D) zero.
Which of the following will happen when the Federal Reserve buys bonds from the public in the open market and the amount of cash held by the public does not change?
A. The required reserve ratio will increase. B. The money supply will decrease. C. The deposits of commercial banks will decline. D. Commercial bank reserves will increase.