Use the following diagram of the market for money to answer the next question.
The equilibrium interest rate is
A. I1.
B. I2.
C. I3.
D. not determinable without additional information.
Answer: B
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Refer to the scenario above. What is likely to be the impact on Firm B's sales if Firm B decides to sponsor the event while Firm A decides not to sponsor the event?
A) A 10% increase in sales B) A 7% increase in sales C) A 2% increase in sales D) A 5% increase in sales
Individuals base their demand for an asset on
A) the expected return the asset offers compared with the returns offered by other assets. B) the riskiness of the asset's expected return. C) the asset's liquidity. D) the expected return, how risky that expected return is, and the asset's liquidity. E) the aesthetic qualities of the asset.
In general, when people talk about investing, they mean that they:
A. have lent their money to someone who will use it to buy physical capital. B. have put money in the stock market. C. hold stocks or bonds. D. All of these statements are true.
In the United States, a little more than half the electorate will turn out to vote in:
a. local elections. b. state elections. c. judicial elections. d. presidential elections.