Which of the following provides young people with a strong incentive to make regular payments into a retirement program and invest these funds in a diverse set of stocks?
A) The prices of stocks tend to fluctuate more than the prices of bonds.
B) When held over lengthy periods like 30 or 40 years, historically the rate of return on stocks has been both higher and less variable than that of bonds.
C) Over short periods of time, variation in the real rate of return of stocks is greater than bonds.
D) Lower interest rates will lead to higher
B) When held over lengthy periods like 30 or 40 years, historically the rate of return on stocks has been both higher and less variable than that of bonds.
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Refer to the scenario above. What is the sum of the payoffs to the firms if both firms use Strategy A?
A) 1 B) -2 C) 2 D) 0
Explain the theory of investment in human capital and the specific role that education plays in the theory.
What will be an ideal response?
According to the equation of exchange, if total output is 2,000 units, the velocity of money is 5, and the money supply is $1,000, the average price per transaction will be
a. $0.50. b. $2.50. c. $5.00. d. $7.50.
If aggregate demand shifts outward over a long period of time, with aggregate supply held constant, the economy should experience
A. unemployment. B. recession. C. budget surpluses. D. inflation.