If the government were to reduce its spending, it would be enacting:
A. contractionary fiscal policy.
B. expansionary fiscal policy.
C. a budgetary crisis intervention.
D. expansionary budgetary policy.
A. contractionary fiscal policy.
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Checking deposits are included in
A) M1 only. B) M2 only. C) M1 and M2. D) neither M1 nor M2.
If the present value equation used to calculate the price of a stock you are considering buying is "[$7 / (0.04 - 0.03)], which of the following is correct, assuming that dividends will grow at a constant rate?
A) The dividend is $7 per share, the dividend growth rate is 4 percent, and the interest rate is 3 percent. B) The stock price is $700, the dividend growth rate is 3 percent, and the interest rate is 4 percent. C) The stock price is $7, the dividend growth rate is 3 percent, and the interest rate is 1 percent. D) The dividend is $7 per share, the dividend growth rate is 1 percent, and the interest rate is 4 percent.
The key to understanding the movement in stock prices is to understand
A) expectations. B) market share. C) accounting profits. D) the firms contribution to the social welfare of its employees.
Which of the following is not characteristic of monopolistic competition?
A. Some market power. B. Low concentration ratios. C. Firms have zero control over price. D. Many firms in an industry.