As the volatility of the stock price increases, the time value of the option:
A. decreases.
B. increases.
C. doesn't change.
D. is zero.
Answer: B
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Economist Arthur Laffer made the argument that tax rates in the United States were so high that reducing the rates would increase tax revenue
a. True b. False Indicate whether the statement is true or false
In the short run, ________ determines output, and in the long run ________ determines output.
A. potential output; prices B. total spending; prices C. potential output; total spending D. total spending; potential output
During 2008, oil price increases
A) did not shift the short-run aggregate supply curve as far to the left as similar increases had 30 years earlier. B) shifted the short-run aggregate supply curve farther to the left than similar increases had 30 years earlier. C) shifted the aggregate demand curve farther to the left than similar increases had 30 years earlier. D) shifted the aggregate demand curve farther to the right than similar increases had 30 years earlier.
Which of the following will be observed if the Fed raises the reserve requirement?
a. The deposit expansion multiplier will fall b. The discount rate will decline c. The interest rate ceilings will fall d. Excess reserves will increase e. Money supply will increase