Which of the following people purchased the correct asset to meet his or her objective?
a. Michelle wanted to be a part owner of Mamma Rosa's Pizza, so she purchased a bond issued by Mamma Rosa's Pizza.
b. Tim wanted a high return, even if it meant taking some risk, so he purchased stock issued by Specific Electric instead of bonds issued by Specific Electric.
c. Jennifer wanted to buy equity in Honda, so she purchased bonds sold by Honda.
d. All of the above are correct.
b
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Which economist is credited with originating the use of supply and demand analysis?
A. Vernon Smith B. Adam Smith C. Alfred Marshall D. John Maynard Keynes
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Some firms require consumers to pay an initial fee for the right to buy their product and an additional fee for each unit of the product they purchase. This practice is referred to as
A) dual pricing. B) odd pricing. C) a two-part tariff. D) intertemporal pricing.
Which of the following shocks could trigger an expansion?
a. A large cut-back in military spending. b. A large increase in the price of oil. c. A sudden decrease in consumption. d. A large military buildup. e. A sudden decrease in investment.