The most important source of funds for nonfinancial businesses is ________
A) financial intermediaries
B) insurance companies
C) hedge funds
D) state and local governments
A
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Which of the following thoughts do the Keynesian and the new Keynesian economists share?
a. The belief that wages and prices are not flexible in the short run b. The belief that the aggregate supply curve is always a horizontal line c. The belief that the government's role in the economy should be minimized d. The belief that the natural rate of unemployment in an economy is always zero e. The belief that prices are constant and that changes in aggregate expenditures determine equilibrium real GDP
If the supply curve for a product is vertical, then the elasticity of supply is: a. equal to zero
b. equal to one. c. greater than one but less than infinity. d. equal to infinity.
As the market wage increases:
a. the income effect normally influences you to work more. b. the income effect normally influences you to work less. c. the substitution effect normally influences you to work less. d. the substitution effect normally influences you to involve in nonmarket work.
Which of the following is correct?
A. A person who purchases a corporate bond is guaranteed to earn dividends from the stock. B. A person who purchases a corporate bond is borrowing money from a corporation. C. A person who purchases a corporate stock is buying ownership in the corporation. D. A person who purchases a corporate stock gets the option to buy other shares at lower prices.