Which Statement Is TRUE

question 217

Multiple Choice

Which statement is TRUE?

• A) Bonds are a way for the government to lend.
• B) Bonds are a way for corporations to lend.
• C) A bond is like an IOU.
• D) Bonds are a way for both government and corporations to lend.

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Definitions:

Long Run

A period of time in economics sufficient for all markets to adjust to changes, including the production capacity of the industry.

Price Paid

The actual amount of money exchanged for acquiring a good or service.

Resource Market

A market where raw materials, services, and other inputs required to produce goods and services are bought and sold.

Shift Resources

The reallocation of resources from one use to another, often in response to changing market conditions.