Which of the following is a difference between a bond and a stock?
a. The owner of a bond can sell it many times, while a stock remains with its first owner
b. Typically, governments and corporations borrow through a bond market, while a stock market is the most common source of funds for households.
c. The owner of a bond earns interest on the money that is paid to buy it, while the owner of a stock owns an equity in the company that issues the stock.
d. The owner of a bond owns an equity in the company that issues the bond, while the owner of a stock earns interest on the money that is paid to buy it.
c
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Even though airfares have been increasing, the revenue earned by airlines has declined. Based on this statement, what may be concluded about price, cross-price, or income elasticity of demand?
What will be an ideal response?
A factor is endogenous when:
a. It fluctuates in a narrow band around its long term value. b. It is not determined by the forces of supply and demand in any of the three macroeconomic markets. c. It is determined by the forces of supply and demand in any of the three macroeconomic markets. d. It is under full control by the central bank and/or the government. e. The central bank and the government have no means to influence it.