Low risk stocks are usually accompanied by
a. low returns
b. no returns
c. high returns
d. no sales-no one would buy low risk stocks
a
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The function of money that enables individuals to exchange goods and services in a common unit of account is called:
A) medium of exchange. B) store of value. C) unit of account. D) measure of power.
The distinction between consumption and investment is:
A. somewhat arbitrary, since investment includes housing investment, which does not increase future productive capacity. B. that only households consume and only businesses invest. C. that investment always increases future productive capacity, while consumption does not. D. arbitrary, since the same expenditure may be counted as a consumption item in one year and an investment in another.
For both Keynesians and monetarists to predict accurately the effects of a change in the money supply on the price level, they need to add ____ to their analysis.
A. aggregate demand B. nominal GDP C. real GDP D. aggregate supply E. government spending
If you are told that the government had an actual budget deficit of $50 billion, then you would:
A. Know that fiscal policy was expansionary B. Know that fiscal policy was contractionary C. Know that fiscal policy was producing a cyclical deficit D. Not be able to determine the direction of fiscal policy from the information given