An important problem with corporations is
A. the possibility of large liabilities for the owners.
B. the separation of ownership and control.
C. the inability of the government to control and tax the firms.
D. the difficulties with raising financial capital.
Answer: B
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Interest earned on foreign holdings of U.S. federal, state and local government debt are recorded in the
A) services account. B) merchandise account. C) transfers account. D) capital account.
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price support program to achieve their goal. How much wheat must the government buy?
A. 10 billion bushels per year B. 4 billion bushels per year C. 6 billion bushels per year D. None
Higher nominal interest rates ________ the amount of money demanded and a higher price level ________ the amount of money demanded.
A. increase; decreases B. increase; increases C. decrease; decreases D. decrease; increases
An autonomous monetary policy easing reduces real interest rates and raises aggregate output ________ and the inflation rate rises ________
A) temporarily; permanently B) permanently; temporarily C) permanently; permanently D) temporarily; temporarily