Which of the following is a difference between stocks and bonds?
A. Stocks are issued for a fixed period; bonds are not.
B. Stocks pay interest; bonds pay dividends.
C. Bond payouts are more predictable than payouts from stocks.
D. Bonds represent ownership; stocks represent debt.
C. Bond payouts are more predictable than payouts from stocks.
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The value (purchasing power) of each unit of money
a. is largely independent of the money supply. b. tends to increase as the money supply expands. c. increases as the general level of prices rise. d. is inversely related to the general level of prices.
When money is used to set the value of goods such as cars, and TVs, money is serving as a:
A. unit of account. B. medium of exchange. C. store of wealth. D. unit of wealth.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The monetary base includes
A. currency, checkable accounts, traveler's checks, small CDs, and money market accounts. B. currency plus checkable accounts and traveler's checks. C. just cash held by the public. D. cash held by banks and by the public plus deposits at the Federal Reserve.