As an option approaches its expiration date, the value of the option approaches:
A. zero.
B. the price of the underlying asset.
C. the intrinsic value.
D. infinity.
Answer: C
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If the growth rates of nominal GDP and real GDP in an economy are 6% and 2% respectively, the inflation rate in the economy must be:
A) 2%. B) 8%. C) 4%. D) 3%.
Macroeconomics is the study of aggregate variables such as national production and unemployment
Indicate whether the statement is true or false
When "stagflation" occurs
A) the economy experiences higher inflation rates and lower unemployment rates at the same time. B) the economy experiences lower inflation rates and higher unemployment rates at the same time. C) the economy experiences lower inflation rates and lower unemployment rates at the same time. D) the economy experiences higher inflation rates and higher unemployment rates at the same time.
What does annual economic growth refer to?
A) annual increases in GDP B) annual increases in consumption spending C) annual increases in investment spending D) annual increases in Real GDP E) none of the above