According to an economist, which of the following would be an example of investment spending?
a. A firm spending $8 million for the maintenance of 50 recreational parks across its home country
b. An individual buying $1 million of stock in a leading software company
c. An individual spending $0.5 million in government bonds
d. A firm spending $10 million to purchase a new factory
d
Economics
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A reduced risk premium __________ the discount factor in the stock price valuation formula, and __________ stock prices
A) raises; raises B) raises; lowers C) lowers; raises D) lowers; lowers
Economics
Which of the following produces the securities that the Fed buys and sells on the open market?
a. Board of Governors b. Treasury Department c. Federal Open Market Committee d. Department of Commerce e. District Federal Reserve Banks
Economics