Suppose the yield on government bonds rises. This should cause __________ in the discount factor in the stock price valuation formula and __________ in stock prices
A) a fall; a rise
B) a rise; a fall
C) a fall; a fall
D) no change; no change
B
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Which of the following scenarios would tend to raise the value of the U.S. dollar in foreign exchange markets?
A. An increase in the U.S. demand for foreign oil B. A rise in U.S. interest rates C. Enactment of contractionary fiscal policy in the United States D. Enactment of easy monetary policy in the United States
As the demand for a product falls, it is not uncommon for the industry to become a monopoly. This is most likely due to
a. an increase in the number of barriers. b. legal restrictions being imposed. c. the surviving firm operating on the declining part of its average cost curve. d. patent protection causing high prices.
The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be:
A. horizontal at the full-employment level of real GDP. B. positively sloped at the full-employment level of real GDP. C. vertical at the full-employment level of real GDP. D. backward bending at the full-employment level of real GDP.
Which will NOT increase the average productivity of labor?
A. An increase in the size of the labor force. B. An increase in the stock of real capital. C. Improvements in the education and health of the labor force. D. Technological progress as reflected in more efficient capital goods.