In the capital market, households ________ supply the financial resources to firms that allow them to purchase ________.
A. indirectly; capital
B. indirectly; labor
C. indirectly; land
D. directly; capital
Answer: A
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For a given return on assets, the lower is bank capital
A) the lower is the return for the owners of the bank. B) the higher is the return for the owners of the bank. C) the lower is the credit risk for the owners of the bank. D) the lower the possibility of bank failure.
. Central banks, as they conduct monetary policy, inevitably affect only ___________, with no lasting impact on ___________ in the long run.
A. prices; employment B. employment; prices C. output; prices D. demand; employment
Why do many economists rate the income tax high in efficiency and equity terms?
What will be an ideal response?
One way the government decides how to pay for public goods is:
A. how easy it is to exclude people who don't pay. B. comparing individual's marginal benefits of the good. C. polling the public about the most appropriate funding measures. D. determining who uses the good the most and increasing their property taxes.