Say's Law Says That

question 212

Multiple Choice

Say's law says that

• A) consumption is greater than supply.
• B) desired expenditures always equal actual expenditures.
• C) people produce the goods they consume.
• D) people consume the goods they produce.

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Definitions:

Foreign Bonds

Bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold. Thus, a Canadian firm selling bonds denominated in Swiss francs in Switzerland is selling foreign bonds.

Domestic Bonds

Bonds issued within a country's borders and typically denominated in that country's currency.

Market Rate of Interest

The prevailing rate of interest determined by supply and demand in the credit market that borrowers must pay to lenders.

Coupon

The interest rate paid by fixed-income securities, typically expressed as an annual percentage of the face value.