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Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.
-Refer to Pessimism.Which curve shifts and in which direction?
Face Value
The face value or monetary amount displayed on a bond, note, or any financial document, indicating the total due upon its maturity.
Operating Lease
A lease agreement allowing a business to use an asset without ownership, often with lower payments and shorter terms than a finance lease.
Capital Lease
A lease agreement that is classified as a purchase by the lessee due to its terms closely mirroring the acquisition of an asset.
Preferred Stock
Preferred stock represents a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often receiving dividends before common shareholders.
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