Aggregate expenditure (AE) equals
a. C + I + G.
b. C + G.
c. C – I – (X – IM).
d. C + I + G + (X – IM).
d. C + I + G + (X – IM).
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An open market purchase of government securities by the Fed would shift the aggregate demand curve leftward
Indicate whether the statement is true or false
Assume that a security has two possible outcomes. There is a 50 percent chance that the yield will equal 12 percent and a 50 percent chance that the yield will equal 4 percent. The expected yield for this security is
A) 16 percent. B) 12 percent. C) 8 percent. D) 4 percent.
Which of the following is a distinction between general and specific human capital?
A. General human capital consists of training and education that is valued by different firms, whereas specific human capital is more valuable to the current employer. B. General human capital leads to self-selection on the basis of risk preference, whereas specific human capital leads to the adverse selection problem. C. General human capital enables workers to earn compensating wage differentials, whereas workers with specific human capital earn the competitive wage rate. D. General human capital leads to higher labor costs, whereas specific human capital leads to higher turnover costs.
Speculators in the financial market are:
A. largely thought to be detrimental to the overall health of the financial system. B. illegal, and often work in the "grey" markets despite this. C. seen by most as necessary for the health of the financial system. D. debated by some as to whether they contribute to the financial system's success.