A debt instrument represents
A) an ownership claim by the purchaser on the issuer.
B) a promise by a borrower to repay principal plus interest to a lender.
C) an attempt by a borrower in default to restore his or her credit.
D) a nontaxable asset, owned primarily by large corporations.
B
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According to New Keynesian theory, fluctuations in the target interest rate are not a good explanation of the business cycle because the model predicts that
A) consumption is constant. B) labor is countercyclical. C) average labor productivity is countercyclical. D) output is countercyclical.
A person's judgments are based on the value meanings derived from feelings, this is known as:
a. Affective domain b. Cognitive domain c. Construct domain d. Clarification construct
Long-run aggregate supply curve corresponds to
A) real GDP when the economy is above full employment. B) real GDP when the economy is at full employment. C) the economy outside its production possibilities curve. D) the economy inside its production possibilities curve.
An increase in government spending on goods to build or repair infrastructure
a. shifts the aggregate demand curve to the right. b. has a multiplier effect. c. shifts the aggregate supply curve to the right, but this effect is likely more important in the long run. d. All of the above are correct.