Suppose your bank account pays a 5% interest rate. You are considering purchasing a share of stock in DH Corporation for $250 . The stock will pay you a $10 dividend at the end of years 1, 2, 3, 4, and 5 . You expect to be able to sell the stock at the end of year 5 for $300 . Is DH a good investment? Provide evidence to support your answer
The present value of the investment in DH Corporation is $278.35, so DH would be a good investment.
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Stagflation is caused by
a. a negative supply shock. b. a positive supply shock. c. a negative demand shock. d. a positive demand shock. e. none of the above.
Reciprocity between two countries implies that
a. neither will trade with the other b. trade flows freely across the two countries' borders c. trade can only be beneficial to one of the countries d. each agree not to trade with any other countries e. you do unto others as they do unto you
To close a recessionary gap using fiscal policy, the government can _____
Fill in the blank(s) with the appropriate word(s).
An excise tax taxes individual income.
Answer the following statement true (T) or false (F)