If a project's only risk is diversifiable,
A) only half the risk premium should be added to the discount rate.
B) only half the risk premium should be subtracted from the discount rate.
C) the risk premium should be added to the discount rate.
D) the risk premium should be subtracted from the discount rate.
E) no risk premium should be attached to the discount rate.
E
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A long-run aggregate supply curve may graphically be represented as a
A) vertical line. B) a downward sloping line. C) an upward sloping line. D) horizontal line.
In recession years, ________ jobs are lost than created, and vacancies and job openings ________
A) more; increase B) more; decline C) fewer; decline D) fewer; increase
Which of the following statements is correct with respect to endogenous growth models?
a. Changes in government policy that affect savings and investment rates can increase levels of output in the long-run. b. Changes in government policy that affect savings and investment rates can increase the growth rate of output in the long-run. c. Long-run growth rates are not stationary. d. both a and b. e. all of the above.
The price signal the consumer gets in a competitive market
A. In no way reflects opportunity cost. B. Is not reliable for making choices about the allocation of resources. C. Is an accurate reflection of opportunity cost. D. Is the result of the selfishness of individuals.