When bad money drives out good money, the price level will rise
Indicate whether the statement is true or false
T
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If a corporation retains all its profits and distributes none of the profit to owners, how can owners benefit?
A) If the retained earnings are expected to create future profits, the market price of the firm's stock will increase and create a capital gain for stockholders if the stock is sold. B) Shares of stock can be converted into bonds so stockholders will be able to earn coupon payments. C) Owners will benefit by changing the board of directors. D) Owners will only benefit if some profits are paid out in the form of dividends.
A man-made resource such as a building or a machine is an example of which resource?
A. entrepreneurial ability B. physical capital C. labor D. human capital
Which of the following is NOT an example of investment in human capital?
A. a business student's internship B. A mechanic attends a training workshop on a new type of engine. C. Johnny learns how to read. D. a mobile device for work
If the expected inflation rate is unchanged, a rise in the natural rate of unemployment would
A. not shift either the short-run or long-run Phillips curves. B. shift both the short-run and long-run Phillips curves to the left. C. shift both the short-run and long-run Phillips curves to the right. D. shift the short-run Phillips curve to the left and shift the long-run Phillips curve to the right.