Included in government expenditures are government purchases and transfer payments

Even if the Fed attempts to control an asset bubble by raising interest rates to any reasonable degree, it is not clear that overly-optimistic investors would respond

a. True b. False

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.