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1. The purchaser of a share of stock receives interest each year from the stock

ID: 1161455 • Letter: 1

Question

1. The purchaser of a share of stock receives interest each year from the stock and then receives the purchase price of the stock at its maturity. T/F

2. Most of Facebook's investment spending is for scholarships for its employees to study the latest social media technology. T/F

3. When households invest their wealth in financial markets, they purchase financial assets. T/F

4. Autonomous spending occurs in the second round of spending increases caused by the multiplier T/F

5. Negative inventory investment caused the growth of GDP to be fairly low when the recovery from the recession began in the fourth quarter of 2001. T/F

6. According to the life-cycle hypothesis, consumers plan their spending based on their current disposable income when they are very young. T/F

Explanation / Answer

Ans

A false. It is case with bond

B false

C True

D false. Investment results in income in 2nd round but autonomous spending doesn't depend on income

E fslse

F True. They plan for old age age based on it