Some mutual funds in the United States are now investing in stocks of foreign firms

By expanding to global financial markets, these mutual funds will be able to diversify their stock portfolios, allowing savers more options to spread their money among many financial investments. This is an example of A) risk sharing.
B) providing information.
C) investor securitization.
D) decreasing liquidity.


A

Economics

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Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. If Candidate X is running for office against Candidate Z, then:

A. all voters to the left of Z will vote for X, and all voters to the right of Z will vote for Z. B. all voters who would have voted for Y will vote for X. C. Candidate X might win. D. Candidate Z will win.

Economics

What is not one of the reasons why farmers prefer price supports more than direct income supplements?

a. Direct income supplements tend to remain fixed over time. b. Direct income supplements tend to provide lower benefits. c. Direct income supplements tend to go predominantly to poor farmers. d. Direct income supplements tend to be viewed as demeaning.

Economics

Higher rates of anticipated inflation would tend to:

a. increase velocity and decrease nominal GDP. b. increase velocity and increase nominal GDP. c. decrease velocity and decrease nominal GDP. d. decrease velocity and increase nominal GDP.

Economics

When the rate of growth of per capita income of poorer countries is higher than that of richer countries, it leads to economic convergence

a. True b. False Indicate whether the statement is true or false

Economics