Bonds are a safer form of investment because
a. full bond payments are made before stockholders receive any dividends
b. they are guaranteed by the government
c. they are guaranteed by the investment industry
d. a stockholder's personal assets can be used to pay the bondholder's interest
e. bondholders can elect the board of directors
A
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A(n) ________ in U.S. interest rates will cause an increase in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The market demand for MP3 players is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10. If he signed a fixed-fee rental contract with the store owner and pays $400 as the rent,
A) Nick will sell 20 MP3 players. B) Nick will sell 30 MP3 players. C) Nick will sell 40 MP3 players. D) Nick will sell 50 MP3 players.
The diagram concerns supply adjustments to an increase in demand (D 1 to D 2 ) in the immediate market period, the short run, and the long run. In the long run, the increase in demand will:
A. have no effect on either equilibrium price or quantity.
B. increase equilibrium price but not equilibrium quantity.
C. increase equilibrium quantity but not equilibrium price.
D. increase both equilibrium price and quantity.
The interest rate, as it appears on paper in a contract, is the:
A. nominal interest rate. B. short-term interest rate. C. real interest rate. D. long-term interest rate.