Buying shares of corporate stock tends to be more risky when
a. the stock of a single corporation is purchased.
b. the stock may have to be sold within a few months.
c. all stocks bought are in the same industry.
d. all of the above are true.
D
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What are some of the issues associated with the consumer price index?
What will be an ideal response?
In the rational expectations model, only unexpected or unpredictable changes cause unemployment to deviate from its natural rate
a. True b. False Indicate whether the statement is true or false
An individual who holds some of her wealth in the form of money in order to pay rent and buy groceries is illustrating the transactions demand for money
a. True b. False Indicate whether the statement is true or false
If there is a leftward shift of the money demand curve, which of the following should the Fed do if it wants to keep output stable?
a. Lower its interest rate target b. Sell bonds in the open market c. Wait, since output usually does not change when the money demand curve shifts d. Raise its interest rate target e. Buy bonds in the open market