The Capital Asset Pricing Model determines the weighted average cost of capital
Indicate whether the statement is true or false
False
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When a competitive market maximizes economic surplus, it implies that the
A. quantity demanded is lower than the quantity supplied. B. marginal benefit of having the product is greater than the marginal cost. C. combined consumer and producer surplus is maximized. D. buyers are getting the maximum consumer surplus from the product.
Which of the following will increase both money supply and money demand in the short run?
a. An open market sale of bonds by the Fed b. An open market purchase of bonds by the Fed c. An increase in government purchases d. A decrease in taxes e. An increase in autonomous consumption
Suppose there is a decrease in U.S. income and Mexican income does not change. We would expect to see
A) both the dollar and the peso depreciate. B) both the dollar and the peso appreciate. C) the dollar depreciate and the peso appreciate. D) the dollar appreciate and the peso depreciate.
When market failure occurs, the role of government is to
A. Do nothing. B. Eliminate markets. C. Push market outcomes closer to the ideal. D. Create an alternative to markets.