In general, financial assets that have a(n) _______ amount of risk have a _________ rate of return.
A. higher; higher
B. higher; lower
C. lower; higher
D. equal; higher
A. higher; higher
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Refer to the figure above. Calculate the total surplus in Lithasia under free trade
A) $150 B) $250 C) $325 D) $375
Suppose that a mutual fund, Washington Peak Strategic Bond Fund, believes it has hit upon a winning investment strategy.The fund uses an active management strategy to try to outperform the bond market
According to Washington Peak's prospectus, investors need to pay fees of 2 percent annually.Based on the historical success of their active investment strategy, the strategy is projected to generate annual returns (once fees are paid) of 8 percent. A friend of yours is considering investing in Washington Peak and asks you for investment advice. What would you suggest?
Within the framework of the AD-AS model, an increase in savings by households will
a. increase the supply of loanable funds and reduce interest rates. b. be offset by a decrease in savings by businesses. c. cause long-run fluctuations in the rate of consumption. d. result in a decline in aggregate demand, output, and employment.
Economic integration
A. occurs when countries are granted most-favored-nation status. B. occurs when one country voluntarily agrees to reduce its exports to another country. C. occurs when two or more nations join to form a free-trade zone. D. occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets.