The current price of a stock increases when:
A. interest rates decrease.
B. expected future dividends decrease.
C. the expected future price of the stock decreases.
D. the perceived riskiness of the stock increases.
Answer: A
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In Figure 5-19, the consumer experiences at point C
A. greater total utility than at point D. B. greater total utility than at point E. C. less total utility than at point D. D. total utility equal to that experienced at point D.
GDP as predicted by the classical model is
a. lower than the actual level of GDP b. higher than the actual level of GDP c. smoother and steadier than actual GDP d. more unstable over time than actual GDP e. an accurate predictor of actual GDP
The institution that is responsible for maintaining international monetary stability is the:
A. World Bank. B. United Nations. C. International Reserve Bank. D. International Monetary Fund.
A binding price ceiling is presented graphically as a(n):
a. price at equilibrium. b. price below equilibrium. c. price above equilibrium. d. inefficiently low quality of the good provided.