To the investor, stocks are riskier than bonds because
a. interest rates fluctuate more than stock prices.
b. dividends depend on profits.
c. speculators manipulate stocks but not bonds.
d. dividends are taxed twice.
b
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As a person's wage rate increases, the substitution effect motivates an increase in work and the income effect motivates a decrease in work
Indicate whether the statement is true or false
The Bretton Woods agreement created the ________, which was given the task of promoting the growth of world trade by setting rules for the maintenance of fixed exchange rates and by making loans to countries that were experiencing balance of payments
difficulties. A) IMF B) World Bank C) Central Settlements Bank D) Bank of International Settlements
The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $50 million. If GDP, consumption, and government spending remains the same and Alpetra is a closed economy, what is the change in investment?
a. $50 million b. $100 million c. No change d. Cannot be determined from the information given
________ is an estimation technique that begins with an initial approximation, which is then modified in accordance with additional information.
A. The adaptive rationality standard B. Anchoring and adjustment C. Status quo bias D. Regression to the mean