What do bonds represent?
A. Shares of ownership in a corporation and a guaranteed stream of profits
B. Shares of ownership in a corporation and an entitlement to its future profits
C. Debt contracts with corporations or governments, and regular interest payments on the loan
D. Debt contracts with corporations or governments, and some unspecified interest payments on the loan
C. Debt contracts with corporations or governments, and regular interest payments on the loan
You might also like to view...
Which of the following is NOT a part of the income approach to determining GDP?
A) rental income B) gross private domestic investment C) net interest D) indirect business taxes
If a monopolist is producing a rate of output at which market demand is inelastic,
a. it may or may not be maximizing its short-run profit b. reducing output would reduce both total revenue and total cost c. reducing output would increase both total revenue and total cost d. reducing output would increase total revenue and reduce total cost e. increasing output will increase its short-run economic profit
Following Keynesian economics, and assuming a marginal propensity to consume (MPC) of 0.75, an increase in federal government spending of $100 billion at below full employment would be expected to shift the aggregate demand curve by $300 billion to the right
a. True b. False Indicate whether the statement is true or false
If the social benefit is greater than the private benefit in a particular market, then the private equilibrium will be at a quantity:
A. equal to the socially optimal level. B. greater than or less than the socially optimum level, depending on the size of the external costs. C. greater than the socially optimal level. D. less than the socially optimal level.