The increase in stock prices in 2009 and 2010 was
A. the result of an elaborate conspiracy by greedy manipulators to ruin the Big Three automakers.
B. a consequence of the rebound of those years.
C. largely due to the sharply increased uncertainty regarding the strategically-critical financial sector.
D. totally irrational and unjustified by any fundamental determinants of stock values.
Answer: B
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If a non-renewable resource is scarce, has constant marginal cost of production and is sold in a competitive market,
A) its price will increase over time. B) its price will exceed marginal cost. C) its price will increase by the rate of interest. D) All of the above.
Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.90 . An increase in government spending of $1 billion would result in an increase in GDP of:
a. $0. b. $0.9 billion. c. $1.0 billion. d. $9.0 billion. e. $10.0 billion.
In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then GDP decreases
a. True b. False Indicate whether the statement is true or false
All other things being equal, an increase in the supply of labor will lead to a fall in the wage
a. True b. False Indicate whether the statement is true or false