Which of the following will reduce the risk accompanying equity (stock) investments?
a. the purchase of shares of a mutual fund that holds the stocks of many diverse corporations
b. the purchasing and holding of equities over a lengthy period of time
c. the purchase of shares in firms doing business in a wider variety of industries and markets
d. all of the above
D
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An inferior good is a good for which the quantity demanded increases as the price decreases, holding everything else constant
Indicate whether the statement is true or false
If AE > Y, which of the following will NOT occur?
A) inventories will decline B) actual investment will be more than planned investment C) employment will increase D) GDP will increase
Over the long-run, fluctuations in the growth rate in output are primarily driven by fluctuations in
a. investment in capital. b. educational attainment. c. fluctuations in the labor force. d. fluctuations in labor productivity.
The value of the estimated transformation parameter in generalized least square estimation that eliminates serial correlation in error terms indicates whether the estimates are likely to be closer to the pooled OLS or the fixed effects estimates.
Answer the following statement true (T) or false (F)