Everything else held constant, a decrease in autonomous consumer spending will cause the IS curve to shift to the ________ and aggregate demand will ________
A) right; increase
B) right; decrease
C) left; increase
D) left; decrease
D
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If a stock's dividend is expected to grow at a constant rate of 6 percent in the future
and it has just paid a dividend of $2.50 a share, and you have an alternative investment of equal risk that will earn a 8 percent rate of return, what would you be willing to pay per share for this stock? A) $2.86 B) $33.13 C) $132.50 D) $200.00
The most important difference between unit excise taxes and ad valorem excise taxes is _____
a. the unit tax will change in response to a change in the price of the taxed good, while the ad valorem tax will not b. the unit tax will not change in response to a change in the price of the taxed good, while the ad valorem tax will c. the unit tax increases in response to a change in the price of the taxed good, while the ad valorem tax will decline d. the unit tax declines in response to a change in the price of the taxed good, while the ad valorem tax will increase
At any quantity of output below the intersection of the marginal revenue and marginal cost curves:
A. ATC is lower than AVC. B. MC is higher than MR. C. MR is higher than MC. D. the firm would lose profits producing the units.
Suppose a country that has been pegging its currency is faced with a situation where financial market participants now expect some future revaluation. In such a situation, we would generally expect which of the following to occur?
A) an increase in the domestic interest rate B) an announcement by the central bank that a large revaluation will occur in the near future C) an increase in demand for the country's currency D) all of the above E) none of the above