An example of an investment is
A. the purchase of a share of Berkshire Hathaway stock.
B. the purchase of an iPhone by a company for one of its salesmen.
C. the purchase of a government Treasury bill.
D. all of the above
Answer: B
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Negative cross-price elasticity of demand indicates that
a. the product is an inferior good b. the product is a necessity c. the product is a luxury d. the two products are substitutes e. the two products are complements
The major categories of federal government spending are
What will be an ideal response?
Discuss the effects on the current price of a stock from each of the following:a) An increase in the growth rate of the dividend;b) A decrease in the risk-free interest rate;c) An increase in the equity-risk premium; and finallyd) A decrease in the annual dividend.
What will be an ideal response?
There are limits to the ability of monetary authorities to use sterilized intervention in the case of a surplus because
A. the central bank's ability to constantly obtain foreign currency for the sterilized intervention is constrained. B. the central bank may be unwilling to increase its holdings of domestic currency. C. foreign countries will increase political pressures on the country to allow its currency to appreciate. D. the export level is fixed and it cannot be allowed to drop.