Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a substantial increase in value. Rank these same securities with regard to investors' legal claims for repayment on their investments
Possibility of increase in value: (1) common stock - (2) preferred stock - (3) bonds
Legal claims: - (1) bonds - (2) preferred stock - (3) common stock
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If a minimum wage is set above the equilibrium wage rate, employment
A) will increase. B) will not change. C) will decrease. D) may increase, decrease or not change depending on how the supply of labor is affected by the minimum wage.
In the short run, an extremely large budget deficit run by a government can: a. shift the aggregate demand curve to the right and cause deflation
b. shift the aggregate demand curve to the left and cause unemployment. c. shift the aggregate demand curve to the right and cause severe inflation. d. shift the aggregate demand curve to the left and cause underemployment.