Which of the following is the best analogy? Inflation is like:
A. a mile having more feet.
B. a day having more hours.
C. a minute having fewer seconds.
D. a pound having more ounces.
Answer: C
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According to the classical dichotomy, which of the following is not influenced by monetary factors?
a. unemployment b. the price level c. nominal interest rates d. All of the above are correct.
An arbitrary preference by an employer for one group of workers over another is termed:
A. employer discrimination. B. statistical discrimination. C. customer discrimination. D. employee discrimination.
If European economies enter a recession,
A) U.S. aggregate demand decreases and the U.S. AD curve shifts rightward. B) the quantity of real GDP demanded in the United States decreases and there is a movement down along the U.S. AD curve. C) U.S. aggregate demand decreases and the U.S. AD curve shifts leftward. D) the quantity of real GDP demanded in the United States increases and there is a movement up along the U.S. AD curve. E) U.S. aggregate demand increases and the U.S. AD curve shifts rightward.
The use of the same cost of capital (risk adjusted discount rate) for all capital projects in a corporation
A) is usually the correct procedure. B) is incorrect since different divisions of the corporation may be faced with different levels of risk. C) is incorrect since different capital projects, even in the same division, may be faced with different levels of risk. D) Both B and C