Payments to stockholders are called ______, and payments to bondholders are called _______
a. interest, dividends
b. profits, dividends
c. dividends, profits
d. dividends, interest
e. dividends, mortgages
D
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Currency held inside the banking system is included in the M1 measure of the money supply
Indicate whether the statement is true or false
Which of the following is also known as the firm's planning curve?
a. the average total cost curve b. the total cost curve c. the long-run average cost curve d. the long-run marginal cost curve e. the fixed cost curve
Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. This person has:
a. confused association and causation. b. misunderstood the Ceteris paribus assumption. c. used normative economics to answer a positive question. d. built an untestable model.
If consumers expect that the price of pretzels will decrease next week, what would happen today?
A) Demand today for pretzels would decrease. B) Demand today for pretzels would increase. C) Demand today for pretzels would be unaffected. D) Supply today of pretzels would decrease.