If an investor's primary stock holding is currently Exxon Mobil, the purchase of which of the following stocks would provide the investor with the largest reduction in risk?
What will be an ideal response?
Wal-Mart
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The government sector balance equals
A) net taxes plus government expenditures. B) saving plus investment. C) government expenditures plus investment. D) net taxes minus government expenditures. E) saving minus investment.
If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was
A) 1.5 percent. B) 15 percent. C) 100 percent. D) 115 percent.
The U.S. tax system
A) reduces inequality and shifts the Lorenz curve away from the line of equality. B) reduces inequality and shifts the Lorenz curve toward the line of equality. C) increases inequality and shifts the Lorenz curve toward the line of equality. D) increases inequality and shifts the Lorenz curve away from the line of equality.
Just after a cyclical trough, given the excess capacity in the economy, there should be an unusually ________ rate of closing the gap between desired and actual capital stocks, making net investment respond relatively ________ to rising sales
A) high, strongly B) high, weakly C) low, strongly D) low, weakly