What most frightens investors in the stock market is:
a. the possibility of losing their investments
b. the possibility of gaining too much from their investments, and the resultant tax consequences
c. the possibility that the prices of many investments may collapse simultaneously
d. the possibility that a company that they have invested in will go bankrupt
c
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__________ trading volume promotes __________ bid-asked spreads
A) Large; wide B) Large; narrow C) Small; narrow D) None of the above.
Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is U = (M)2. Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. What is the maximum you would pay security to check in your bike?
What will be an ideal response?
Based on the graph showing the effective federal funds rate, once interest rates bottomed out after the 2001 recession, they ______.
a. levelled off for several years
b. began an upward trend that is still ongoing
c. increased consistently for several years
d. went up slightly one year then dropped rapidly
The primary determinant of the level of consumption and saving in the economy is the:
a. Level of income b. Interest rate c. Level of prices d. Level of investment