Which of the following does not take place in the direct finance market?
A) Ownership in corporations is sold in the form of preferred stock.
B) Ownership in corporations is sold in the form of common stock.
C) Corporate bonds are sold to savers.
D) Deposits from savers are accumulated and loans made to borrowers.
D
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A tax rebate, which is expected to be offered in this and all future years, will
A) have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate. B) increase aggregate supply and aggregate demand. C) have a small positive effect on consumption and aggregate demand. D) have no effect on consumption and aggregate demand.
If politicians decide to proceed with protection, why might economists prefer tariffs to quotas? Explain at least three reasons
What will be an ideal response?