Bonds ________ and stocks ________
A) always pay interest payments forever; always pay dividends forever
B) have a fixed number of interest payments; have a fixed number of dividend payments
C) may pay interest payments forever; have a fixed number of dividend payments
D) have a fixed number of interest payments; may pay dividends forever
D
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When the U.S-foreign exchange rate appreciates in the short run and then depreciates slightly in the long run, it implies that the foreign money supply has:
a. temporarily risen. b. permanently risen. c. temporarily fallen. d. permanently fallen
In the figure above, if there is no Ricardo-Barro effect, the government has a ________ because ________
A) budget deficit; there is no Ricardo-Barro effect. B) balanced budget; there is no Ricardo-Barro effect. C) budget surplus; the SLF curve lies to the right of the PSLF curve. D) budget surplus; there is no Ricardo-Barro effect. E) budget deficit; the SLF curve lies to the right of the PSLF curve.