A motivation for holding stock is

A. To receive interest payments on the firm's debt.
B. To have a direct role in the operation of the corporation.
C. To own a low-risk, illiquid asset.
D. The anticipation of capital gains.


Answer: D

Economics

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The central problem of every economic system is to

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When Chile experiences investment from abroad, it experiences, as a result,

a. an increase in productivity. b. a decrease in Gross National Product (GNP). c. lower wages for Chilean workers. d. None of the above is correct.

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Firms will try to signal superior quality of their goods by:

A. advertising. B. making sales information available to the public and advertising. C. issuing warranties or guarantees. D. making sales information available to the public.

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Assume an economy is in equilibrium at an output level of $600 billion. If government purchases decrease by $75 billion, then at the output level of $600 billion, there is

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