When an investor buys a corporate bond, the face value of the bond is
A) a dividend payment on the bond. B) a loan to the corporation.
C) a measure of ownership in the corporation. D) the coupon rate of the bond.
B
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Over the past decade, the incomes of the top 1 percent have increased while the incomes of the middle class declined. These changes mean that the Lorenz curve moved ________ the 45 degree line and the Gini ratio has ________
A) closer to; decreased B) closer to; increased C) further away from; decreased D) further away from; increased
The idea that saving equals investment in the Solow model means that a steady state can be reached only when
A) s = k. B) s = n + d. C) sf(k) = (s + d)k. D) sf(k) = (n + d)k.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000
Table 9.8 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm A contemplates selling one permit to Firm B, what is Firm A's willingness to accept?
A. $2,000 B. $3,000 C. $4,000 D. $5,000
The most important, most convenient, and most flexible way in which the Federal Reserve affects the supply of bank reserves is through:
A. changing interest rates. B. conducting open-market operations. C. changing bank reserve requirement ratios. D. changing the Federal Reserve discount rate.