Which of the following statements is true?
A) The expected return and standard deviation of return are greater for common stock than for U.S. Treasury bills.
B) The expected return on common stocks is greater than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is less than the standard deviation of return for U.S. Treasury bills
C) The expected return on common stocks is less than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is greater than the standard deviation of return for U.S. Treasury bills.
D) The expected return and standard deviation of return are less for common stocks than for U.S. Treasury bills.
A
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The real interest rate
A) can never be negative. B) is approximately equal to the nominal interest rate plus the inflation rate. C) is approximately equal to the nominal interest rate minus the inflation rate. D) is positively related to the inflation rate.
Countries that trade a small amount with a single foreign country tend to float their exchange rate to the foreign country's currency
Indicate whether the statement is true or false
Assume that the labor market for auto mechanics is initially in equilibrium. Which of the following would lead to an increase in both the wage rate and employment for auto mechanics?
a. a decrease in the price of a substitutable input b. a decrease in the price of a complementary input c. an increase in training costs for auto mechanics d. a decrease in wages in an alternate labor market e. a decrease in demand for the output of firms employing auto mechanics
The U.S. market for interbank borrowing and lending is called the:
a. Federal funds markets. b. Secondary market. c. Money market. d. Real Goods Market. e. Primary market.