Households receive bonds when they
A. purchase a share of ownership in firms.
B. sell shares of a firm's stock.
C. borrow money from financial institutions.
D. lend money directly to firms.
Answer: D
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When a government taxes the sale of beer, cooperative surplus ________ and society gets ________
A) increases; richer B) increases; poorer C) decreases; richer D) decreases; poorer
Which of the following had the greatest impact in pulling the U.S. economy out of the Great Depression?
a. The economy's natural tendency to contract toward potential output b. The federal government's aggressive policy of tax cuts c. The federal government's aggressive policy of monetary stimuli d. A precipitous drop in aggregate demand e. Increased spending during World War II
Which of the following CANNOT be true at any output along a perfectly competitive firm's short-run supply curve?
A. Marginal cost is greater than average total cost. B. Marginal cost is greater than average variable cost. C. Average variable cost is greater than marginal cost. D. Average total cost is greater than marginal cost.
Define a price floor