If the money multiplier is 5 and the Federal Reserves issues bonds in the amount of $6 million, what is the final change to the money stock?

Which of the following is true?

a. Most stockholders own stock because they want to participate in the daily decision making of the firms that they own. b. The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future. c. The potential losses of shareholders are limited to the amount of their investment. d. Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.

Which of the following is the best example of economic investment?

A. Apple builds a new plant to manufacture iPads B. Your college purchases a 5-year old building in order to have more classrooms C. A retiree purchases U.S. government bonds D. A company like Bank of America acquires another company like Merrill Lynch