Financial intermediaries ______.
a. use corporate profits for capital investment
b. are residual claimants of corporate resources who receive a proportion of profits
c. make household funds available to firms
d. provide fixed, regular dividend payments to their clients
c. make household funds available to firms
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Which of the following is the most unstable category of GDP?
a. consumption b. investment c. government purchases d. net exports
With positive externalities, market equilibrium occurs at a quantity that is greater than the socially optimal output
a. True b. False Indicate whether the statement is true or false
Which of the following statements is correct?
a. The interest rate that is usually reported is the interest rate that has been corrected for inflation. b. The supply of, and demand for, loanable funds depend on the real (rather than nominal) interest rate. c. If the nominal interest rate has decreased and the real interest rate has also decreased, then the inflation rate must have decreased as well. d. All of the above are correct.
A decrease in real GDP would affect the U.S. economy by:
A. cutting tax revenues and raising government expenditures. B. cutting government expenditures and raising tax revenues. C. raising both tax revenues and government expenditures. D. cutting both government expenditures and tax revenues.