#6 Econ 2020

#6 Econ 2020 - Written Assignment #6: To be submitted for...

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Written Assignment #6: To be submitted for evaluation Multiple Choice 1) Which of the following is true: a) Stocks represent a loan to a company, bonds give the purchaser partial ownership of a company. b) Stocks give the purchaser partial ownership of a company, bonds represent a loan to a company. c) Both stocks and bonds give the purchaser partial ownership of a company d) Both stocks and bonds represent a loan to a company 2) After taking this test, you celebrate by purchasing one hundred shares of stock in Martha Stewart's .Com company. Over time which of the following will most likely result in a lower market price of your shares. a) Lower market interest rates. b) An increase in the rate of earnings growth for her company. c) An increase in the inflation rate. d) A Continued Goldilocks economy. 3) The coupon rate on a newly issued bond is positively correlated with: a)A decrease in market interest rates. b) A shorter time to the maturity of the bond. c)The tax attribute of a municipal bond. d) An increase in the default risk of the bond issuer. 4) During the business cycle, we can expect supply side economic growth: a)To increase if the Federal Reserve reduces interest rates. b) To decrease if the Federal Reserve raises interest rates. c) To grow at a steady level equal to the growth rate of aggregate demand.
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d) To grow at a steady level equal to gains in worker productivity and the increase in the labor force. 5)
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This note was uploaded on 04/05/2010 for the course ECON 2020 at Colorado.

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#6 Econ 2020 - Written Assignment #6: To be submitted for...

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