The coupon rate is the percentage of
A. profits distributed to bondholders.
B. profits distributed to stockholders.
C. the face value of the bond that is paid out regularly to the bondholder.
D. the assets of the corporation that is paid out regularly to each stockholder.
Answer: C
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Total U.S. consumption possibilities will increase if the United States:
A. imports a product for which the exporting country has the comparative advantage. B. never imports a product that can be produced by American workers. C. has consumers who join together and adopt a "Buy American" policy. D. agrees to subsidize imports of products, such as computers, that represent the comparative advantage of domestic U.S. manufacturing firms.
According to ________, trade between two countries allows each of the trading countries to allocate its resources most efficiently.
A. the Heckscher-Ohlin theorem B. the theory of absolute advantage C. the theory of comparative advantage D. the General Agreement on Tariffs and Trade
Inflation is troublesome to consumers because of the following effects, except
A. Household incomes may be rising slower than the overall prices B. The purchasing power of people's savings would decrease C. Workers' wages may be rising faster than the overall price level D. The standard of living would fall if a household has a fixed nominal income
The money multiplier is the ratio of
a. bank reserves to bank deposits. b. the change in the money supply to the change in the monetary base. c. the money supply to the monetary base. d. bank deposits to bank reserves. e. both b and c.