When expansionary monetary policy pushes interest rates downward to a low level,
a. the velocity of money will decline, which will weaken the expansionary impact on demand and nominal GDP.
b. the velocity of money will increase, which will strengthen the expansionary impact on demand and nominal GDP.
c. the prices of stocks and other real assets can be expected to fall, which will weaken the impact of the expansionary policy on demand and nominal GDP.
d. the earnings derived from savings accounts will increase, which will stimulate demand and nominal GDP.
A
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In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ____ discounted at the stockholders' required rate of return
a. profits (cash flows) b. revenues c. outlays d. costs e. investments
Suppose the demand for peaches decreases. What will happen to producer surplus in the market for peaches?
a. It increases. b. It decreases. c. It remains unchanged. d. It may increase, decrease, or remain unchanged.
If you want to vote for the management of the corporation, you should buy
A. common stock. B. bonds. C. preferred stock. D. either common stock or preferred stock.
Total utility is
A. relatively easy to measure. B. the additional satisfaction gained by consuming one more unit of something. C. the total amount of satisfaction yielded by the consumption of a good or service. D. used to compare different people's likes and dislikes.