Which of the following statements is false?
A) As the price paid for a bond rises, the yield declines.
B) If you purchase stock from an individual that currently owns the stock, you are buying it in the secondary market.
C) The yield on a bond is another term for the coupon rate on a bond.
D) A rating of Aaa from Moody's is the highest bond rating given by that rating agency.
C
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If the price elasticity of demand for a good is greater than one, then the demand for that good is:
A. unit elastic. B. perfectly elastic. C. inelastic. D. elastic.
In the Keynesian economic model, _____________ aggregate demand brings unemployment and too much brings inflation.
a. too much b. stable c. too little d. dynamic
Which of the following is an implication of the random walk theory?
a. Experts will be able to make money by picking and choosing the best stocks. b. There is a systematic pattern to the movement of prices in the stock market. c. Stock market investors can expect to earn a fairly steady real rate of return of about 7 percent annually. d. Even experts will be unable to predict the future movement of stock prices with any degree of accuracy.
Supposed actual investment is greater than planned investment at the current level of output in 2010. Given this information, we know that
A) GDP will tend to increase over time. B) firms' stock of inventories must have increased unexpectedly in 2010. C) saving must be less than planned investment. D) saving must be equal to planned investment.