The buying and selling process that leads profit-seeking investors to equalize average expected rates of return from identical assets is known
A. diversification.
B. arbitrage.
C. hedging.
D. securitization.
B. arbitrage.
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Which of the following was an effect of the price ceiling placed on gasoline in the U.S. in the 1970s?
A) Car owners started buying luxury cars that were less fuel-efficient as the price of gas was very low. B) Gas stations ran out of gas as the quantity of gas demanded exceeded the quantity supplied. C) Those who valued gas the most were able to buy gas under the price ceiling. D) The inventory of unsold gas increased and gas stations incurred losses.
Which of the following increases the slope of the consumption function?
A) an increase in consumer wealth B) a decrease in the value of consumer durables C) an increase in consumer confidence D) an increase in the marginal propensity to consume
With respect to income redistribution programs, what is meant by "The Big Tradeoff," and what causes it?
What will be an ideal response?
On a graph with x on the horizontal axis and y on the vertical axis, the origin is
a. the point where x = 0 and y = 0 b. any point where x = 0 c. any point where y = 0 d. where a curve intersects the vertical axis e. where a curve intersects the horizontal axis