Refer to the graph. The point Y represents the:
A. Rate of return for the market portfolio
B. Rate of return for the risk-free asset
C. Risk premium for the market portfolio
D. Compensation for time preference for a given asset
B.
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Employment and (total) potential GDP increase if the
A) labor supply curve shifts rightward and the labor demand curve does not shift. B) labor demand curve shifts leftward more than the labor supply curve shifts rightward. C) labor demand curve shifts leftward and the labor supply curve does not shift. D) None of the above answers are correct.
In the United States during the late 1970s, the nominal interest rates were quite high, but the real interest rates were negative. From the Fisher equation, we can conclude that expected inflation in the United States during this period was
A) irrelevant. B) low. C) negative. D) high.
To maximize cartel profit, the members must allocate output so that the marginal cost for the final unit produced by each firm is
a. identical b. unequal c. negative d. equal to the firm's average total cost e. maximized
Securitization is the practice of:
A. packaging individual debts into a single uniform asset that can be easily bought and sold. B. the government guaranteeing repayment of risky home loans made to individuals with lower credit. C. borrowing based on expected future earnings. D. backing a security with a riskless asset.