A particularly attractive feature of the ________ is that it tells you what the market is predicting about future short-term interest rates by just looking at the slope of the yield curve
A) segmented markets theory
B) expectations theory
C) liquidity premium theory
D) separable markets theory
C
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The marginal social cost of production is the
A) marginal private cost plus the marginal external cost. B) same as the marginal cost of any externality. C) total cost of any externality. D) marginal private cost minus the marginal external cost.
A price/earnings ratio is the price of a stock divided by the earnings per share.
Answer the following statement true (T) or false (F)
When Toyota introduced the new Prius in the United States, which of the following occurred?
A The hybrid car was not as successful as expected. B The costs of manufacturing were too high and Toyota had to stop production. D All of the above C Toyota confronted the risk of making large investments and the uncertainly over future oil prices.
The predictions that the Obama administration used to justify the stimulus plan have been shown to be (according to most economists)
A. wrong; the plan did not work as well as their predictions suggested it would but did have some positive impact. B. wrong; the plan had no positive impact and has been credited with extending the recession of 2007-2009. C. right on the mark. D. wrong; the plan worked much better than their predictions suggested it would.