An increase in the reserve ratio, ?, will cause
A) an increase in the monetary base (H).
B) a reduction in H.
C) an increase in the money multiplier.
D) a reduction in the money multiplier.
E) none of the above
D
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The risk premium that risk averse investors will demand on a security will be in proportion to the __________ of the portfolio
A) systematic risk B) nonsystematic risk C) risk of the worst case return D) diversification
Suppose k = y1/2, total factor productivity is constant and equal to 1, s = 0.40, and d = 0.10. When the economy reaches the steady state, investment per worker is ________
A) $0.80 B) $1.60 C) $3.20 D) $6.40
A patent and a trade secret have exactly the same effect
Indicate whether the statement is true or false
If Lady Gaga insists that tickets to her concert be sold for $300 each rather than the $500 each that could be charged as reflected by demand for those tickets, then the result will be
A. to eliminate $300 worth of economic rent per ticket. B. that the demand for tickets will decrease. C. that part of the economic rent will be dissipated to scalpers, radio station owners, etc. D. to create an excess supply of tickets.