The Purchase of a Bond Is

question 128

Multiple Choice

The purchase of a bond is

• A) not considered capital.
• B) equivalent to adding capital to a firm's capital stock.
• C) equivalent to undertaking investment.
• D) a more attractive form of investment (compared to capital) when interest rates are high.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers in a market are willing and able to purchase at a given price over a specified period of time.

Surplus of Labor

A situation where the supply of labor exceeds the demand for it, often leading to unemployment or underemployment.

Minimum Wages

The lowest legal wage that can be paid to workers, set by government laws to protect employees from unduly low pay.

Structural Unemployment

A type of unemployment that results from a mismatch between the skills that workers offer and the skills demanded by employers.