A fund that takes household savings and puts them into ________ projects in exchange for a share of the profits if the new business succeeds is a venture capital fund.
A. zero-risk
B. low-risk
C. high-risk
D. government
Answer: C
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If the Fed wants to increase the value of the dollar, it will
A) sell foreign securities and buy dollars in international currency markets. B) buy foreign securities and sell dollars in international currency markets. C) buy foreign securities and also buy dollars in international currency markets. D) sell foreign securities and also sell dollars in international currency markets.
Suppose a Big Mac costs $4.20 in the United States and 9.55 zlotys in Poland. If the exchange rate is 2.77 zlotys per dollar, purchasing power parity predicts that
A) the dollar is undervalued. B) the zloty is undervalued. C) the zloty is overvalued. D) both the dollar and the zloty are undervalued.
If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then: a. excess demand exists
b. excess supply exists. c. price will rise. d. price will fall. e. the market is in equilibrium.
"The Soviet economy is proof that, contrary to what many skeptics had earlier believed, a socialist command economy can function and even thrive.". This statement is from:
a. Hayek b. Mises c. Friedman d. Samuelson e. None of the above