Which of the Following Is NOT True According to Say's

question 218

Multiple Choice

Which of the following is NOT true according to Say's law?

• A) Supply creates its own demand.
• B) No overproduction is possible in a market economy in the long run.
• C) Desired expenditures will always be higher than actual expenditures.
• D) Producing goods and services generates the means and the willingness to purchase other goods and services.

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Definitions:

Coupon

In finance, a coupon refers to the annual interest payment paid to bondholders, typically expressed as a percentage of the face value.

Pay Interest Annually

The process of making a yearly payment to creditors or bondholders as compensation for the use of borrowed money.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, factoring in both interest payments and the capital gain or loss realized upon maturity.

Coupon Rate

The interest rate that an issuer of a bond or other fixed-income security agrees to pay to the bondholder annually, expressed as a percentage of the bond's face value.