The value of an investment in an index fund depends on
a. the earnings estimate for the major index constituent.
b. the average performance of all mutual funds.
c. what happens to the prices of all stocks in that index.
d. the specific stock selection practices employed by the fund manager.
c
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When firms reduce their target level of inventories, planned investment ________, and equilibrium expenditure and real GDP ________
A) rises; increase B) falls; remains the same C) rises; decrease D) falls; decrease E) falls; increase
International trade has strong effects on income distributions. Therefore, international trade
A) will tend to hurt some groups in each trading country. B) is beneficial to everyone in both trading countries. C) will tend to hurt one trading country. D) will tend to hurt everyone in both countries. E) will be beneficial to all those engaged in international trade.
In the market for loanable funds, the demand curve:
A. reflects that more people will choose to save the higher is the interest rate. B. is upward sloping. C. is downward sloping. D. represents savers.
Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase electric cars in great numbers. In the market for gasoline, the market clearing price ________ and the equilibrium quantity ________.
A. is indeterminate, definitely falls B. definitely falls, definitely rises C. definitely rises, is indeterminate D. definitely falls, is indeterminate