Thomas wants to invest. he finds a growing company that has stock with a P/E of 34.5. what should he do?
a. forget about investing and spend all his money
b. wait for the price to rise
c. wait for the price to fall
d. buy it now before the price rises
Ans: c. wait for the price to fall
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In the short run, lowering the federal funds rate shifts the aggregate demand curve ________ so that real GDP ________ and the price level ________
A) leftward; decreases; rises B) rightward; increases; rises C) rightward; decreases; rises D) leftward; decreases; falls E) rightward; increases; falls
If the demand curve for bottled water shifts leftward and the supply curve of bottled water shifts leftward, the equilibrium
A) price of bottled water definitely increases. B) price of bottled water definitely decreases. C) quantity of bottled water definitely increases. D) quantity of bottled water definitely decreases.
A privately owned monopoly will NEVER produce along a range of output for which
A) the demand curve is elastic. B) the demand curve is inelastic. C) the price elasticity of demand is greater than 1. D) the price elasticity of supply is greater than 1.
How is the typical market basket determined for the Consumer Price Index (CPI)?
a. By the President b. By the U.S. Congress c. By a survey of the spending patterns of thousands of businesses d. By a survey of the spending patterns of thousands of government agencies e. By a survey of the spending patterns of thousands of households