Individuals base their demand for an asset on
A) the expected return the asset offers compared with the returns offered by other assets.
B) the riskiness of the asset's expected return.
C) the asset's liquidity.
D) the expected return, how risky that expected return is, and the asset's liquidity.
E) the aesthetic qualities of the asset.
D
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Use the following production possibilities tables to answer the next question.Germany's Production Possibilities ABCDEFAutos (millions)048121620Chemicals (millions)4032241680United States' Production Possibilities ABCDEFAutos (millions)03691215Chemicals (millions)60483624120Suppose that each nation specializes in producing the product for which it has a comparative advantage, and the terms of trade are set at 3 units of chemicals for 1 unit of autos. In this case, Germany could obtain and consume a maximum combination of 8 million units of autos and
A. 24 million units of chemicals. B. 36 million units of chemicals. C. 48 million units of chemicals. D. 12 million units of chemicals.
An increase in the money supply
a. lowers the interest rate, causing a decrease in investment and an increase in GDP b. lowers the interest rate, causing an increase in investment and a decrease in GDP c. lowers the interest rate, causing an increase in investment and an increase in GDP d. raises the interest rate, causing an increase in investment and an increase in GDP e. raises the interest rate, causing a decrease in investment and a decrease in GDP
Which of the following activities would be calculated as part of GDP accounts?
A. Drug trafficking. B. Money laundry. C. Prostitution. D. Purchasing plastic surgery.
When we are at full employment
A. the unemployment rate is 0. B. the cyclical unemployment rate is 0. C. the structural unemployment rate is 0. D. the frictional unemployment rate is 0.