Equity markets are markets:
A. for stocks.
B. for AAA rated bonds.
C. for either stocks or bonds.
D. of U.S. Treasury bonds.
Answer: A
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A decrease in the amount of human capital acquired by workers will lead to decrease in the supply of labor
Indicate whether the statement is true or false
Refer to Figure 9.3. If the government establishes a price ceiling of $1.00, the resulting deadweight loss will be
A) $1.50. B) $200. C) $150. D) $300. E) $600.
If inflation is the major problem in the economy, which of the following would be an appropriate monetary policy response?
a. decreasing government spending b. decreasing the discount rate c. decreasing reserve requirements d. none of the above
Use the dynamic aggregate demand and aggregate supply model and start with Year 1 in long-run macroeconomic equilibrium. For Year 2, graph aggregate demand, long-run aggregate supply, and short-run aggregate supply such that the condition of the economy
will induce the Federal Reserve to conduct an expansionary monetary policy. Briefly explain the condition of the economy and what the Federal Reserve is attempting to do. What will be an ideal response?