​Which of the Following Statements Is CORRECT

question 27

Multiple Choice

​Which of the following statements is CORRECT?

• A) ​If you purchase 100 shares of Disney stock from your brother-in-law,this is an example of a primary market transaction.
• B) ​If Disney issues additional shares of common stock through an investment banker,this would be a secondary market transaction.
• C) ​The NYSE is an example of an over-the-counter market.
• D) ​Only institutions,and not individuals,can engage in derivative market transactions.
• E) ​As they are generally defined,money market transactions involve debt securities with maturities of less than one year.

Understand the concepts and implications of public debt and its relation to GDP.

Identify and describe the role of automatic stabilizers in macroeconomic policy.

Differentiate between discretionary and nondiscretionary fiscal policies.

Comprehend the multiplier effect and its implications for fiscal policy.