Limited liability rules:
A. mean that bankrupt companies owe nothing to corporate bondholders.
B. discourage investment in corporate stock.
C. help prevent corporate fraud.
D. encourage stock investing by limiting shareholder risk of loss.
D. encourage stock investing by limiting shareholder risk of loss.
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The figure above shows the loanable funds market. If the real interest rate is 2 percent, then
A) there is a surplus in the loanable funds market. B) there will be a leftward shift in the demand for loanable funds curve. C) there will be government intervention in the market to make sure there is no credit crisis. D) there is a shortage in the loanable funds market E) the demand for loanable funds curve will shift rightward.
In the year ____, our President announced that we would no longer redeem dollars for gold.
Fill in the blank(s) with the appropriate word(s).