Suppose your employer offers to match funds you place into a savings plan as long as you purchase the company stock and hold it for at least three years. Which of the following is true?
A) You should not put funds into this plan unless you expect to hold the company stock for at least ten years.
B) You should allocate funds into this plan if the company management recommends it.
C) It can be attractive to put funds into a plan like this but you should sell your company stock when permitted in order to diversify your portfolio.
D) It does not make any sense to put funds into such a plan.
C) It can be attractive to put funds into a plan like this but you should sell your company stock when permitted in order to diversify your portfolio.
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If aggregate spending in an economy can be written as Y = 15,000 + 0.6Y - 20,000r, and potential output equals 34,000, what real interest rate must the Federal Reserve set to bring the economy to full employment?
A. 5 percent B. 7 percent C. 3 percent D. 6 percent
In much of Europe, the legal age to obtain a driver's license is 18. If the legal driving age in the United States was changed to 18, how would this affect the market for new automobiles? The market for automobile insurance?
What will be an ideal response?
Refer to Table 3-3. The table contains information about the sorghum market. Use the table to answer the following questions
a. What are the equilibrium price and quantity of sorghum? b. Suppose the prevailing price is $6 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $6 per bushel? e. If the market price is $6 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 36,000 bushels of sorghum? g. Suppose the market price is $14 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $14 per bushel? j. If the market price is $14 per bushel, what must happen to restore equilibrium in the market?
Rodolfo gets 1 util from regular potato chips, 4 utils from salt-and-vinegar chips, and 6 utils from barbeque-flavored chips. If regular potato chips cost $3.00, which of the following pricing structures represents consumer equilibrium?
a. salt-and-vinegar: $3.00; barbeque: $3.00 b. salt-and-vinegar: $4.00; barbeque: $6.00 c. salt-and-vinegar: $6.00; barbeque: $8.00 d. salt-and-vinegar: $12.00; barbeque: $18.00