To the stockholder, corporate stock represents
A) a source of fixed interest income.
B) a loan.
C) ownership.
D) a guaranteed return of principal.
C
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Suppose X - M = net exports; T - G = government sector balance; and S - I = private sector balance. What relationship exists among these variables?
A) (X - M ) + (T - G ) + (S - I ) = 0 B) (X - M ) = (T - G ) + (S - I ) C) (T - G ) + (X - M ) = (S - I ) D) (T - G ) = (X - M ) + (S - I )
The long run is best defined as:
A. a period of time sufficiently long that at least one factor of production is fixed. B. the period of time between annual accounting reports. C. a period of time sufficiently long that all factors of production are variable. D. one year or more.
The velocity of circulation, V, is equal to
A. PQ. B. MQ. C. PQ/M. D. M/PQ.