Derivatives are financial instruments that:
A. present high levels of risk and should only be used by the wealthy.
B. should only be used by people seeking high returns from low risk.
C. represent the outright purchase of a bond.
D. when used correctly can actually lower risk.
Answer: D
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Refer to Scenario 10.2. Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing price?
A) $90.00 B) $10.00 C) $55.00 D) $52.50
Moving along the inelastic portion of a demand curve, a large percentage change in price leads to a smaller percentage change in quantity demanded
a. True b. False Indicate whether the statement is true or false
Which of the following events would shift money demand to the right?
a. an increase in the interest rate or an increase in the price level b. an increase in the interest rate, but not an increase in the price level c. an increase in the price level, but not an increase in the interest rate d. neither an increase in the interest rate nor an increase in the price level
For movements along the long-run aggregate supply curve...
What will be an ideal response?