If the banking system's money multiplier is 4, then a $2,000 increase in checkable deposits when banks hold excess reserves will result in which of the following events?
a. The money supply will decrease
b. The money supply will not change.
c. The money supply will increase by exactly $8,000.
d. The money supply will increase by more than $8,000.
e. The money supply will increase by less than $8,000.
e
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Which of the following statements is true?
A) The expected return and standard deviation of return are greater for common stock than for U.S. Treasury bills. B) The expected return on common stocks is greater than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is less than the standard deviation of return for U.S. Treasury bills C) The expected return on common stocks is less than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is greater than the standard deviation of return for U.S. Treasury bills. D) The expected return and standard deviation of return are less for common stocks than for U.S. Treasury bills.
A project is profitable when its internal rate of return is ______ the interest rate.
A. greater than B. less than C. equal to D. less variable
Deregulation of the airline and trucking industry has (i) resulted in considerable entry of new firms or (ii) has forced workers in these industries to make large concessions on wages and working conditions.
A. i and ii B. i but not ii C. ii but not i D. neither i nor ii
Suppose Head Start proponents could show that it saves $2000 per child in reduced need for special education and $3000 per child in reduced need for children to repeat first or second grade, but that these benefits accrue two to three years after program participation. Suppose there are no other benefits and that the program costs $4000 per child. With this data, you
A. would have to argue that Head Start is simply the "right" thing to do for the kids. B. could not conclude that the program makes sense, because present values depend on the interest rate. C. could conclude that the program makes sense as an investment. D. would have to concede that the program is not worth the costs.