Bonds ________ and stocks ________
A) have a fixed number of interest payments; have a fixed number of dividend payments
B) have a fixed number of interest payments; may pay dividends forever
C) may pay interest payments forever; have a fixed number of dividend payments
D) always pay interest payments forever; always pay dividends forever
Answer: B
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A federal government surplus is said to exist in the event that ________
A) federal outlays are greater than federal revenues B) federal outlays are equal to federal revenues C) federal outlays are less than federal revenues D) any of the above conditions exists
Gross federal debt in 2005 was approximately what percent of 2005 GDP?
a. 5 percent b. 25 percent c. 40 percent d. 50 percent e. 90 percent
A lower price for automobiles would reduce the externalities from automobiles.
Answer the following statement true (T) or false (F)
Suppose there is a simultaneous reduction in expected future output and reduction in the future expected interest rate. This will cause which of the following to occur?
A) the IS curve to shift left in the current period B) the IS curve to shift right in the current period C) the LM curve to shift up in the current period D) the LM curve to shift down in the current period E) an ambiguous effect on the position of the IS curve in the current period