Stock markets for securities are important because
A) they are where corporations raise financial capital.
B) they are where proprietorships and partnerships raise financial capital.
C) they permit individuals to transfer their savings directly into investment spending.
D) they make the stocks and bonds more valuable.
A
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If everyone knew in advance the exact rate of inflation:
A. the economy will have reached its long run equilibrium. B. borrowers would be discouraged when inflation will be low and lenders when inflation will be high. C. the risk of the breakdown of financial intermediation would increase. D. the exact rate of inflation wouldn't matter so much because people could prepare.
The poverty threshold income level is
a. an absolute amount that applies to all families equally (i.e., $20,000 household earnings for 2010). b. variable with respect to family size and composition. c. adjusted once each decade, with the census numbers. d. all of the above.