Buying a stock on margin will
A. guarantee gains regardless of whether a stock goes up or down in price
B. increase gains if the stock rises
C. result in a gain of the stock falls
D. will have no impact on stock returns
Ans: B. increase gains if the stock rises
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The domestic currency is said to be ________ if it has appreciated at a lower rate than the difference between the domestic inflation rate and the higher foreign inflation rate
A) undervalued B) overvalued C) appreciated D) risky
A monopolist sets price at $10 and sells 100 units. The corresponding marginal revenue is $5 and marginal cost $3. What recommendation regarding price and quantity would you give this monopolist? Use a graph if you wish.
What will be an ideal response?
Which of the following is correct concerning recessions?
a. They come at fairly regular and predictable intervals. b. They are associated with comparatively large increases in investment spending. c. They are any period when real GDP growth is less than average. d. They tend to be associated with rising unemployment rates.
In a study of whether prices are sticky or not, Alan Blinder supervised interviews of corporate executives on the frequency with which their firms change prices and found that
a. 55 percent of firms changed prices only once a year or less. b. over 20 percent of the firms changed prices more than 12 times per year. c. 10 percent of companies changed prices 4 to 12 times per year. d. there is not a considerable departure from auction-market behavior.