For heavily traded assets like stocks and bonds, arbitrage:
A. will equalize rates of return across all stocks and bonds.
B. will drive up rates of return on all assets.
C. is a lengthy process because of the large volume of transactions.
D. will often equalize rates of return among similar assets within minutes.
D. will often equalize rates of return among similar assets within minutes.
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A good that would be counted as consumption in GDP would be the:
A. Subway sandwich Tony ate for lunch. B. $10 Tony received after winning a bet with his friend. C. $50 in wages Tony received that day from working all afternoon. D. common stock Tony purchased for his 401(k).
The federal government receives most of its revenue from three sources: personal income tax, corporate income tax, and payroll tax
a. True b. False Indicate whether the statement is true or false
Long-run economic growth requires all of the following except
A) technological change. B) increases in capital per hour worked. C) government provision of secure property rights. D) political instability.
When the opportunity cost of holding money increases, then
A) the quantity of money supplied increases. B) people want to hold more money. C) the real interest rate falls. D) the nominal interest rate falls. E) people want to hold less money.