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.
Answer: C
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Which of the following statements is correct?
A. For a given nominal interest rate, the real interest will decrease if inflation decreases. B. For a given expected inflation rate, the nominal interest must increase if real interest decreases. C. For a given real interest rate, the nominal interest must increase if expected inflation increases. D. For a given real interest rate, the nominal interest must decrease if expected inflation increases.
Proponents of monetary policy based on fixed rules base their position on the assumption of a vertical aggregate supply curve.
a. true b. false
One reason economists began to look at more effective coordination mechanisms is that they began to:
A. focus more on the assumption that people are rational. B. focus more on people's predictably irrational behavior. C. rely more heavily on deductive reasoning. D. use advanced calculus in their models.
If tastes for foreign goods and services go up, then we would expect imports to:
A. decrease. B. increase and then sharply decrease more. C. remain constant. D. increase.