You have a portfolio valued at $1,000. Over the next twelve months it loses 75% of its value. What return does the portfolio need to earn over the following twelve months to restore the portfolio to its original value?
A. 200%
B. 300%
C. 75%
D. 25%
Answer: B
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When economists speak of scarcity, they are referring to the
A) condition in which society is not employing all its resources in an efficient way. B) condition in which people's wants outstrip the limited resources available to satisfy those wants. C) economic condition that exists in only very poor countries of the world. D) condition in which society produces too many frivolous goods and not enough socially desirable goods.
Without an accepted medium of exchange
A. people would have to rely on gold or silver in order to exchange goods and services. B. there would be no trade. C. prices are very difficult to determine. D. goods and services would be exchanged by barter.
According to the Taylor rule, if inflation rises by 1 percent above its target of 2 percent, the Fed should:
A. Lower the real Federal funds rate by 0.5 percent B. Raise the real Federal funds rate by 0.5 percent C. Lower the money supply by 5 percent D. Raise the money supply by 5 percent
A nation's average annual real GDP growth rate is 6%. Based on the "rule of 72," the approximate number of years that it would take for this nation's real GDP to double is
A. 15 years. B. 12 years. C. 20 years. D. 17 years.