When the Fed uses its policy tools to smooth out the business cycle, the policy is referred to as a(n)
A. stabilization policy.
B. Pareto-efficient policy.
C. contractionary policy.
D. expansionary policy.
Answer: A
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If the nominal interest rate is 3 percent and the cost of going to the ATM is $1.50, someone who has a 12 percent probability of having his cash lost or stolen and has a total cost of holding cash equal to (547.50/T) + (0.375 ×T) spends ____ daily. Assume that the individual visits the ATM once in every T days.
A. $20 B. $15 C. $10 D. $5
Which of the following is a source of primary data for a firm?
A) customer feedback B) trade publications C) annual reports D) company collateral
Kate files her tax return 36 days after the due date. When she files the return she sends a check for $2,000 which is the balance of the tax owed by her. Kate penalty for failure to file a return will be
A.5% per month B.0.5% per month C.20% per month D.25% per month
Google has just declared a dividend of $2.12 on its common stock. Dividends are paid annually. Dividends are expected to grow at the rapid pace of 10% for the next 4 years, after which growth is expected to slow to 3% per annum forever
During the rapid growth phase, the required return on this investment will be 20%, and it is expected to drop to 12% when growth slows. What is the current market value of this stock? A) $19.73 B) $23.98 C) $25.33 D) $29.43 E) $74.70