People who buy newly issued stock in a corporation such as Crate and Barrel provide

a. debt finance and so become part owners of Crate and Barrel.
b. debt finance and so become creditors of Crate and Barrel.
c. equity finance and so become part owners of Crate and Barrel.
d. equity finance and so become creditors of Crate and Barrel.


c

Economics

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Which of the following is a discretionary fiscal policy action?

A) a progressive tax system that leads to an increase in income tax revenues during an economic boom B) a deliberate tax cut when the economy experiences high unemployment C) an increase in the amount of unemployment compensation because more people become unemployed D) an increase in Supplemental Security Income payments when more people become eligible for the benefits

Economics

In general, which of the following is NOT a characteristic of a fixed exchange rate regime as defined by the text?

a. Capital is mobile. b. Exchange rates are determined by the market in the short run. c. Arbitrage is free to operate. d. Government takes an active role in foreign currency market intervention.

Economics

Refer to Figure 33-2. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience

a) a rising price level and a rising level of output. b) a falling price level and a rising level of output. c) a rising price level and a falling level of output. d) a falling price level and a falling level of output. e) a falling price level and a rising level of unemployment.

Economics

The total amount of physical capital available in a country is know as the country's

A) labor productivity. B) savings. C) investment. D) capital stock.

Economics