An uninsurable risk is one
a. where everyone wishes to bet on the same outcome.
b. in which information is asymmetrically distributed.
c. for which the odds of an event's occurrence cannot be accurately estimated.
d. that cannot be diversified.
d. that cannot be diversified.
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If an economy experiences a $0.8 trillion increase in investment resulting in an increase in real GDP from $10 trillion to $12 trillion,
a. what is the change in equilibrium expenditure? b. what is the change in autonomous expenditure? c. what is the multiplier? d. how would an increase in the marginal tax rate effect the multiplier?
Explain why you would rather be a borrower during a period of unexpected rising inflation, and a lender during a period of unexpected declining inflation
What will be an ideal response?
When secondary market buyers and sellers of securities meet in one central location to conduct trades the market is called a(n)
A) exchange. B) over-the-counter market. C) common market. D) barter market.
Under a fixed exchange rate system, if the government decides to devalue its currency, net exports will ________ and the IS curve will shift to the ________
A) increase; left B) increase; right C) decrease; left D) decrease; right