Which of the following is true?
a. Most stockholders own stock because they want to run the business.
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. Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.
d. Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.
D
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The inflation rate in Venezuela has increased between 2005 and 2010, rising from 14 percent per year to 31 percent per year. At the same time, the growth rate of real GDP fell from 10 percent per year to -2.6 percent per year
The quantity theory of money A) states that the inflation rate over the period would average 4 percent. B) predicts that the velocity of money will decrease over the period. C) states that the growth rate of money must have increased over the period. D) predicts that nominal GDP will decrease over the period.
If factors of production cannot flow between countries
A) there is no reason to expect that wages should be equal worldwide. B) multinational corporations would not exist. C) trade in goods could still occur. D) All of the above.