If the interest rate rises, you would expect the price of any stock to
A. rise.
B. fall.
C. be unaffected.
D. fall to zero.
Answer: B
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The productivity curve is a relationship between ________ and ________
A) real GDP per hour of labor; capital per hour of labor B) real GDP per hour of labor; capital C) capital per hour of labor; labor per hour of capital D) real GDP; hours of labor E) real GDP; capital
If you have $5,000 in wealth and the price level decreases by 20 percent, then
A) the $5,000 will buy fewer goods and services. B) the $5,000 will buy more goods and services. C) the real value of the $5,000 decreases. D) the real value of the $5,000 remains constant.
The government sets a price floor for corn which is above the equilibrium price of corn. As a result, ________
A) the corn market will be efficient B) a deadweight loss will be created C) a shortage of corn will be created D) none of the above answers is correct
Arguments by regulators are often made that predatory pricing, with its attendant temporary price-cutting below costs, is an attempt to eliminate rivals with the intent of raising prices after the competition has left
Critically evaluate this argument.