Which of the following is a similarity between a bank loan and a bond?
a. Only large business houses can raise funds from these two methods
b. Only small business houses can raise funds from these two methods.
c. Funds raised from both methods have a fixed tenure for repayment.
d. Interest is required to be paid on the funds raised from both bonds and bank loans.
d
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When the actual rate of unemployment is less than the natural rate of unemployment, the economy
a. operates at an output greater than its long-run potential. b. operates at its maximum sustainable output. c. must also be experiencing stable prices (zero inflation). d. operates at an output less than its long-run potential.
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
A) a smaller trade sector B) a higher rate of investment C) higher tax rates D) greater use of taxation to transfer income from the rich to the poor
Suppose the economy is operating below its full employment level. The Fed
A. can move the economy toward the full employment level by expanding the money supply to increase aggregate supply. B. can move the economy toward the full employment level by expanding the money supply to increase aggregate demand and to hold prices constant. C. can move the economy toward the full employment level by expanding the money supply to increase aggregate demand through both its direct and its indirect effects. D. is powerless to affect either aggregate demand or aggregate supply. Fiscal policy is needed.
Each firm has a downward-sloping demand curve for loanable funds because its
a. marginal resource cost curve slopes downward b. marginal revenue product curve slopes upward c. marginal rate of return on investment curve slopes downward d. marginal resource cost slopes upward e. marginal rate of return on investment curve slopes upward