For the U.S. economy, the largest expenditure category is:
A) government expenditures.
B) net export expenditures.
C) personal consumption expenditures.
D) investment expenditures.
C
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A sound policy to combat a temporary liquidity surplus in the banking system would be
A) a reduction in the discount rate. B) a decrease in the discount rate. C) the purchase of government securities by the Fed under a repurchase agreement. D) the sale of government securities by the Fed under a repurchase agreement.
A legal claim to a part of a corporation's future profits is called
A) a bond. B) a share of stock. C) a dividend. D) a financial debt.
Appendix: Suppose that a private firm wants to go public to give the owners a chance to retire. It follows the lead of the Google IPO by using a modified Vickrey (or uniform price) auction. The owners of the firm plans to sell 1 million shares and hope to raise at least $10 million from the auction. The following bids were submitted. Bob 250,000 shares at $12 Sam 350,000 shares at $13 Mary
300,000 shares at $9 Sue 100,000 shares at $10 Ravi 450,000 shares at $11 a. The market clearing price is $13, and the sellers of the firm get $13 million. b. The market clearing price is $12, and the sellers of the firm get $13 million. c. The market clearing price is $11, and the sellers of the firm get $11 million. d. The market clearing price is $10, and the sellers of the firm get $10 million. e. The market clearing price is $9, and the sellers of the firm get$9 million
Persistent increases in the overall level of prices have been the norm
a. True b. False Indicate whether the statement is true or false