In general, financial assets that have a(n) ________ amount of risk have a ________ rate of return.
A. lower; higher
B. equal; higher
C. higher; lower
D. higher; higher
Answer: D
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Cities and towns frequently establish fire departments because fire-fighting is viewed as a merit good
Indicate whether the statement is true or false
What are the different components of aggregate expenditure and how do they together form the aggregate expenditure line?
A tit-for-tat strategy, in a repeated game, is one in which a player starts by cooperating and then does whatever the other player did last time
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of the life-cycle motive for saving?
A. Jordan sets aside $200 per month in case she has to pay for a new roof for her house. B. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job. C. Pat puts $400 per month in his 401(k) retirement account. D. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.