In the standard consumption function of C = a + bY, the MPC is
A) Y.
B) bY.
C) a.
D) b.
D
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All of the following are examples of price discrimination EXCEPT
A) buy-one-get-one-free offers. B) "early bird specials" at a restaurant. C) lower ticket prices for matinee performances. D) "buy now, pay later" payment options.
Why are corporations more likely to raise funds externally by debt instead of equity?
A) moral hazard is less of a problem with debt contracts B) transactions costs tend to be higher in the stock market than bond market C) to avoid paying dividends D) interest rates tend to be lower than dividend rates
By purchasing shares in a mutual fund that holds a portfolio of stocks, a person can
a. benefit from fundamental analysis, since the mutual fund requires its shareholders to perform fundamental analysis on their own. b. benefit from fundamental analysis, since the mutual fund hires one or more individuals to perform fundamental analysis for the fund. c. eliminate market risk. d. reduce the standard deviation of his or her portfolio to zero.
What is a result of unemployment that is very low?
What will be an ideal response?