A share of stock will pay a dividend of $20 in one year, and will be sold for an expected price of $500 at that time. If the current one-year interest rate is 5%, the current price of the stock will be approximately equal to
A) $100.
B) $495.
C) $500.
D) $525.
E) none of the above
B
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If real GDP increases and the price index also increases: a. nominal GDP must also have risen
b. nominal GDP must have fallen. c. nominal GDP could have either risen or fallen. d. the percentage increase in nominal GDP must have been greater than the percentage increase in the price level.
The demand curve facing a typical firm in a perfectly competitive market is horizontal
a. True b. False
Assume that the United States levies a high tariff against Japanese steel. How is the tariff likely to affect a. U.S. steel workers? b. General Motors? c. Bethlehem Steel? d. Japanese automobile producers? e. U.S. electric utilities?
What will be an ideal response?
Which types of expenditures (From the GDP formula) are entirely autonomous, according to Keynes?