In which of the following ways can a corporation raise new funds for investment?
I. Issuing new shares of stock
II. Having existing stock resold between two owners
A) I only
B) II only
C) Both I and II
D) Neither I nor II
Answer: A
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Which of the following changes would cause American net exports to increase?
A) An increase in the real value of the dollar B) An increase in American income C) An increase in foreign income D) A shift in demand by American consumers away from domestically produced goods
The authors of the text suggest that a comprehensive personal income tax with few loopholes would be efficient and equitable. What is their reasoning for this statement?
What will be an ideal response?
Spending on newly constructed homes is part of the investment component of GDP.
Answer the following statement true (T) or false (F)
Which of the following is not an automatic stabilizer?
a. Personal income tax revenue. b. Corporate income tax revenue. c. Unemployment compensation benefits. d. Property tax revenue.