Holding everything else constant
A) if asset A's risk rises relative to that of alternative assets, the demand will increase for asset A.
B) the more liquid is asset A, relative to alternative assets, the greater will be the demand for asset A.
C) the lower the expected return to asset A relative to alternative assets, the greater will be the demand for asset A.
D) if wealth increases, demand for asset A increases and demand for alternative assets decreases.
B
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Autonomous planned spending is a function of the
A) marginal propensity to consume. B) marginal propensity to save. C) interest rate. D) tax rate.
Refer to Scenario 17.1. The highest level of y* that can be set and still have the high-productivity people choose to meet it is
A) 16. B) 13 1/3. C) 13. D) 8. E) 0.
Why does cooperative behavior break down in games with finite endpoints?
A) Each player has an incentive to deviate from a cooperative strategy during the last period. B) A Nash equilibrium in pure strategies is not possible in finite repeated games. C) Finite games have the same outcomes as one-period games, and cooperation is not possible in one-period games. D) A Nash equilibrium is only possible in mixed strategies in finite repeated games, but all of the probabilities assigned to particular strategies approach zero as the number of finite game periods becomes large. Thus, we cannot evaluate the expected payoffs in these games.
Why is it NOT surprising that men make up the minority of college graduates?
a. Because of discrimination against women, men are able to get good jobs with only a high school degree. b. Men are smarter than women and they do not need a higher education to be attractive to employers. c. Given their greater physical strength, many men accept high-paying but physically demanding jobs instead of going to college. d. Many men decide to pursue jobs in professional sports and this significantly reduces the number of males who go to college.