Because most asset yields are affected in a systematic way by economic conditions, most securities in portfolios
A) have a covariance greater than zero.
B) have negative yields.
C) have covariance greater than one.
D) increase in risk as new assets are added.
A
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The Federal Reserve Bank attempted to deal with the sluggish aggregate demand that followed the housing market crash and subsequent financial crisis through:
A. contractionary fiscal policy. B. contractionary monetary policy. C. expansionary monetary policy. D. expansionary fiscal policy.
Refer to the graph below. The selection of which point on the production possibilities curve is most like to result in the largest increase in economic growth over time?
A. A
B. B
C. C
D. D
Analysis of macro policy and theory has resulted in of the following views?
A) There should be no constraints imposed on fiscal or monetary policy. B) A constitutional amendment is the most appropriate method to constrain fiscal policy. C) The heads of the central bank should be chosen by popular elections. D) all of the above E) none of the above
Which of the following will not cause the marginal revenue product of labor curve for a firm to shift?
A. an increase in the productivity of workers B. an increase in the wage rate C. a decrease in the price of the product D. an increase in demand for the product