Answer the following questions true (T) or false (F)
1. If you purchase a share of stock from your friend who initially purchased the stock three years ago, your purchase of the stock represents a transaction in the secondary financial market.
2. Direct finance includes the sale by a corporation of stocks or bonds, but does not include borrowing money from a bank.
3. You purchase a share of Facebook stock from a friend who purchased the stock 1 year ago. Your purchase of the stock represents a transaction in the primary financial market.
1. TRUE
2. TRUE
3. FALSE
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A fall in the price level will: a. cause an upward movement upward along the aggregate demand curve. b. cause a downward movement along the aggregate demand curve
c. cause a leftward shift of the aggregate demand curve. d. cause a rightward shift of the aggregate demand curve. e. have no impact on the aggregate demand curve.
Public choice theory focuses on the economics of:
A. fiscal and monetary policy. B. the behavior of business firms. C. antitrust and regulatory policy. D. government decision making, politics, and elections.