Risk in finance means that an asset
A. Does not pay dividends
B. Does not pay capital gains
C. Has a present value that is negative
D. Has future payments that are uncertain
D. Has future payments that are uncertain
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Explain what will happen when the government imposes a maximum price that is above the market equilibrium price. Why is this true?
What will be an ideal response?
Table 15.1Table 15.1 shows the preferred budget in millions for a new sports facility and the number of thousands of voters in a community who prefer that budget. What budget does the median voter prefer?
A. 3 B. 4 C. 5 D. 6
Suppose the Fed increases the money supply. As a result of this, people go out and spend more money on consumer goods, increasing aggregate spending. This is known as a(n)
A) indirect effect of monetary policy. B) direct effect of monetary policy. C) indirect effect of fiscal policy. D) direct effect of fiscal policy.
The standard way to measure the effects of debt in an economy is to look at the stock of debt relative to
A) the total budget. B) GDP. C) total government spending. D) federal tax revenue.