Assume the following situation. In year 1, a $400 capital stock generates a $100 GDP. One-fifth, or $20 of the $100 GDP, is put into investment. Assuming a constant capital/output ratio and no depreciation, the capital stock in year 2 is
a. 400
b. 420
c. 440
d. 500
e. 800
B
Economics
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The development of new financial securities or investment strategies using sophisticated models is known as
A) underwriting. B) factoring. C) financial engineering. D) hedging.
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The situation in which buyers are able to affect the price of a good is referred to as ________ power
A) monopoly B) purchasing C) monopsony D) countervailing
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A. pounds. B. dollars. C. euros. D. gold.
Economics