Which of the following would be associated with an inflationary gap?
A. Interest rates too low
B. Business expectations pessimistic
C. Inventory levels too low
D. Stock market crash
E. Inventory levels are too high
Answer: C
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The theory of investment that links investment spending to stock prices is known as the
A) multiplier model. B) accelerator model. C) neoclassical theory of investment. D) Q-theory of investment.
What type of business is the easiest to set up?
A) corporation B) sole proprietorship C) partnership D) There is no difference in the ease of establishment.
Is $1,000 received today worth as much as $1,000 received one year from now? Explain your answer
What will be an ideal response?
Whenever a nation's currency is expected to depreciate because of various market conditions, the following situation exists regarding its forward rate for another currency:
a. there is a forward discount from the spot rate by the rate of depreciation. b. there is a forward premium from the spot rate by the rate of depreciation. c. there is no difference between the spot and forward rates. d. there is no predictable relationship between the spot and forward rates