In the options market, the right to buy an underlying asset rests with

Investors are often willing to pay positive prices for shares of firms that have never earned a profit because the investors

a. do not know the firms have never earned a profit. b. expect the firms to have positive net earnings in the future. c. expect that interest rates will rise in the future. d. expect that higher rates of inflation will push stock prices higher in the future.

When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is:

a. following a contractionary monetary policy. b. following quantitative easing policy. c. following a tight monetary policy. d. following an expansionary monetary policy.