When comparing stock indexes around the world we:
A. can examine their respective movements if we look at them as percentage changes.
B. find that a given percentage change across all indexes has the same value.
C. observe that they always move together.
D. can see that the numeric change in indices allows investors to make easy comparisons of value.
Answer: A
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The desired reserve ratio is 10 percent. Joe deposits $1,000 in Bank A. Bank A keeps its minimum desired reserves and lends the excess to Fred
Fred spends his loan at J.C. Penney. J.C. Penney deposits the check it receives from Fred in Bank B. Bank B keeps its minimum desired reserves and lends the excess to Mary. How much can Bank B lend to Mary? A) $90 B) $900 C) $810 D) $1,000 E) $100
In the long run, the Phillips curve is a ________ at ________
A) horizontal line; 0% inflation B) vertical line; the natural rate of unemployment C) vertical line; the expected rate of inflation D) negatively sloped line; the intersection of aggregate demand and short-run aggregate supply
A "prisoner's dilemma" can arise when:
a. two large countries simultaneously and independently apply tariffs on imports from each other. b. two large countries simultaneously and independently eliminate tariffs on imports from each other. c. one large country eliminates tariffs on imports from another large country. d. one small country eliminates tariffs on imports from a large country.
Which of the following will cause a leftward shift of the supply curve for houses?
A.) A decrease in consumer incomes. B.) An improvement in the technology used to build houses. C.) Consumer expectations that the price of houses will increase next year. D.) An increase in the cost of construction materials.