Homework Answers
Ans: The money supply
Explanation:
A flow variable is the quantity of an economic variable relating to a period of time, whereas a stock is a quantity measured at a given point in time.
Money supply refers to the total sum of money available to the public in the economy at a point of time. So, money supply is a stock variable.
Investment, oyput, and savings are all flow variables.
Thus, option [e] is correct answer.
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An increase in the Money Supply: Select one: O a. leads to a fall in prices and an increase in consumption, shifting the AD to the left O b.leads to an increase in net exports, shifting the AS to the right O c. leads to a fall in interest rates and a consequent increase in investment, shifting the AD to the right O d. none of the above if a country that is a trade partner of ours falls into...
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Which of the following will affect a company's dividend policy? Select one O A. The amount of new investment projects available. O B. The preferences for dividends or capital gains of its shareholders. ° C. Legal rules concerning the protection of the firm's capital. O D.'All of the above.
When companies need new funds for a project, they Select one: a. Sell bonds b. Sell shares of stock c. Borrow money from the Fed d. Both (a) and (b) are correct e. Both (b) and (c) are correct The most powerful policy making body of the Fed is the Select one: a. Governors of the Fed O b. Presidents of the Federal Reserve district banks c. U.S. Treasury d. Federal Open Market Committee (FOMC) Eurodollars are Select one: a....
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