Three possibilities are equally likely and have payoffs of $3, $6, and $9 . The expected value is:
a. $4
b. $5
c. $6
d. $7
c
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The combinations of gasoline and coffee along one of Sam's indifference curves are combinations
A) which require the same total expenditure. B) that he can afford with his $60.00 income. C) among which he is "indifferent." D) that give him the same marginal rate of substitution.
In the Keynesian model, liquidity preference refers to the
A) demand for capital. B) demand for consumer goods. C) demand for money. D) money supply.
A rightward shift of the investment demand curve could be caused by:
A. a technological advance. B. pessimism about long-term growth. C. forecasts of unfavorable business conditions. D. a decrease in confidence in short-run economic conditions.
One of the most widely followed stock indexes in the United States is the S&P 500. This index represents
A) the stock prices of 500 large U.S. firms. B) the stock prices of the 500 most valuable firms worldwide. C) the stock prices of more than 4,000 U.S. firms. D) the stock prices of 30 large U.S. corporations.