A change in which of the following variables would affect the cash flow for a firm?
A) changes in the nominal interest rate
B) expected future profit
C) changes in the real interest rate
D) changes in expected inflation
E) none of the above
E
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The value of the x-coordinate of a point in a graph is the length of a line from the point to the
A) origin. B) scalar. C) x-axis. D) y-axis.
Carla had received very low annual return from her investment portfolio comprising of stocks of five companies for two years. Her decision to continue holding the same portfolio of assets will be an example of:
a. bounded rationality. b. selfishness. c. altruism. d. systematically missed opportunities.
Suppose workers expect the inflation rate to be 3.6 percent and they receive a nominal wage increase of 7.5 percent. If the actual inflation rate turns out to be 2.8 percent, workers will receive a lower real wage than expected
a. True b. False Indicate whether the statement is true or false
The concept of money as a “unit of account” involves the use of money to
A. speed transactions. B. reduce shopping time. C. protect against inflation. D. quote prices.