The table above gives the CPI basket for 2015. Suppose that 2015 is the reference base period
a) What is the cost of the CPI basket in 2015?
b) What is the cost of the CPI basket in 2016?
c) What is the CPI for 2015?
d) What is the CPI for 2016?
a) The cost of the CPI basket in 2015 is $1,520.00.
b) The cost of the CPI basket in 2016 is $1,712.50.
c) The CPI for 2015 is 100 because 2015 is the base period.
d) The CPI for 2016 equals 100 × [$1,712.50 ÷ $1,520.00] = 112.66.
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Using the one-period valuation model, assuming a year-end dividend of $0.11, an expected sales price of $110, and a required rate of return of 10%, the current price of the stock would be
A) $110.11. B) $121.12. C) $100.10. D) $100.11
Refer to Table 9-7. The table shows entries on the balance sheets for the Federal Reserve and the banking system above. These balance sheet entries are consistent with
A) an open market sale of $1,500 in bonds. B) an open market purchase of $1,500 in bonds. C) neither an open market sale nor an open market purchase. D) either an open market sale or an open market purchase.
An extraordinarily small crop of farm products due to drought causes:
A. a large increase in the price of farm products because the demand for farm products is price inelastic. B. only a slight increase in the price of farm products because the demand for farm products is income elastic. C. only a slight increase in the price of farm products because the demand for farm products is income inelastic. D. a large increase in the price of farm products because the demand for farm products is price elastic.
Adolph Berle and Gardiner Means argued that widely held corporations will be run inefficiently by professional managers. Their argument is based on:
A. blockholders' control. B. inefficient product market structures. C. incentive conflicts between shareholders and managers. D. an inefficient market for CEOs.