What is the difference between buying stocks and buying bonds?
A) A stock can possibly pay dividends forever, but bonds have a fixed number of payments.
B) Differences of opinion about a stock's future may vary considerably but there is less difference about a bond's future.
C) The future growth of a stock is more uncertain than the payments of a bond.
D) All of these are differences between stocks and bonds.
Answer: D
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If the percentage change in the quantity demanded of a good equals the percentage change in price, price elasticity of demand is:
a. elastic. b. inelastic. c. perfectly elastic. d. unitary elastic.
Which of the following statements best describes the neoclassical view about movements in unemployment?
a. The neoclassical view is not especially helpful in explaining why unemployment moves up and down over long time horizons. b. The neoclassical view is especially helpful in explaining why unemployment moves up and down over short time horizons of a few years. c. The neoclassical view is not especially helpful in explaining why unemployment moves up and down over short time horizons of a few years. d. The neoclassical view is especially helpful in explaining why unemployment moves up and down over short and long time horizons.
Use the following table to answer the next question.The table shows a consumption schedule. All figures are in billions of dollars.RGDPConsumption$600$580640610680640720670760700If gross investment was $20 billion, government purchases of goods and services were $20 billion, and taxes and net exports were zero, then the equilibrium level of real GDP would be
A. $680 billion. B. $720 billion. C. $600 billion. D. $640 billion.
When the economy is on the flatter part of the short run aggregate supply curve, efforts to change inflation with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; more b. More; less c. Less; more d. Less; less