What are the two effects of a change in a price that a consumer experiences?
a. the income effect and the budget effect
b. the complement effect and the substitute effect
c. the price effect and the preference effect
d. the income effect and the substitution effect
d
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Inc's stock is currently $50. The last dividend that they paid was $1. If dividends are expected to increase at a 10% annual rate, what is the firm's equity cost of capital?
What will be an ideal response?
Using the standard 45-degree line diagram, how does a decrease in investment spending effect the expenditure schedule?
a. It increases the slope of the expenditure schedule. b. It decreases the slope of the expenditure schedule. c. It shifts the expenditure schedule downward. d. It shifts the expenditure schedule upward.
The World View article titled "The Education Gap between Rich and Poor Nations" says that 85 percent of all Americans graduate from high school. This is an example of
A. Capital-intensive production. B. The inequitable distribution of income. C. A negative externality. D. Investment in human capital.
The number of times per year, on average, that a dollar is spent on final goods and services is known as
A. the equation of exchange. B. the price of money. C. the income velocity of money. D. the money supply.