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?
What will be an ideal response?
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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A commercial bank is defined as
A) any institution that accepts deposits. B) a firm that is chartered to accept deposits and make loans. C) the institution that sets regulations for commercial activities. D) a firm that obtains funds by selling shares and then buys U.S. Treasury bills. E) any institution that makes loans.
After a shift in the aggregate demand curve, which variable adjusts to restore general equilibrium?
A) price level B) real interest rate C) consumption spending D) investment spending
The consumers' surplus derived from the last unit of a good purchased
a. tends to be less than 0 b. tends to be equal to 0 c. tends to equal the price of the good d. tends to be greater than the price of the good e. depends on the marginal utility of the first unit purchased
One problem with the infant industry argument is that
A) the protection is typically never removed, creating a domestic monopoly. B) it fails to protect domestic industries from foreign competition. C) it must be approved by the IMF and the World Bank. D) it must be approved by the Federal Reserve Board.