Investors often pay professional analysts to gather and monitor information on the creditworthiness of borrowers because
A) federal law requires it.
B) most investors are risk neutral.
C) the cost of acquiring information about a borrower's creditworthiness can be high.
D) doing so increases the net-of-tax yield on most investments.
C
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Which of the following is included in the calculation of national income?
A) compensation of employees B) rental income C) indirect business taxes D) all of the above E) none of the above
Martin Shore lost his job when General Motors closed down its local plant. He has been visiting the personnel offices of the other factories in the area, looking for a new job. He is:
a. a member of the civilian labor force who is employed. b. a member of the civilian labor force who is unemployed. c. a member of the civilian labor force who is underemployed. d. a discouraged worker who is not a member of the labor force. e. not a member of the labor force.
The equilibrium output level in the country of Plutonia is $44 billion, while its potential output is $74 billion. Suppose the central bank of the country implements an expansionary monetary policy. Which of the following is likely to occur?
a. An increase in interest rates will stimulate investment, shifting the aggregate demand curve to the right. b. A reduction in interest rates will stimulate investment, shifting the aggregate demand curve to the right. c. A reduction in interest rates will lower investment, shifting the aggregate demand curve to the left. d. An increase in interest rates will lower investment, shifting the aggregate demand curve to the left.
What is the difference between the SS Error and SS Total?