The required stock return an investor seeks can best be represented by which of the following?
A. Risk-free Return + Risk Premium
B. Risk Premium - Risk-free Return
C. Risk-free Return × Risk Premium
D. (Risk-free Return + Risk Premium)/(1 + i)
Answer: A
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If the Fed were to raise the required reserve ratio,
A) excess reserves would decrease. B) excess reserves would increase. C) there would be no effect on the level of excess reserves. D) there would tend to be no effect on the nation's money supply.
Which of the following would fall under the "rule of reason doctrine?"
a. General Motors colludes with Ford to fix the price of their cars b. Coke and Pepsi collude to limit the quantity of soft drinks on the market c. Intel dominates the market for computer processors with a 95% market share d. Reynolds American, Inc. and Lorillard, Inc. agree to limit the introduction of new cigarette brands e. two local restaurants agree to increase their prices by 10%
Economics is the study of
What will be an ideal response?
In order to sell more output units, what must a monopoly do?
A) reduce output price B) reduce input price C) increase output price D) increase input price