People who hold well-diversified portfolios of stocks have greatly reduced or eliminated
a. firm-specific risk, and so they do not need to worry about their wealth decreasing as a result of recessions.
b. market risk, and so they do not need to worry about their wealth decreasing as a result of recessions.
c. firm-specific risk, but still they have reason to worry about their wealth decreasing as a result of recessions.
d. market risk, but still they have reason to worry about their wealth decreasing as a result of recessions.
c
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Economic growth is best measured by increases in
A) per capita real Gross Domestic Product (GDP). B) nominal personal income. C) nominal Gross Domestic Product (GDP). D) per capita nominal Gross Domestic Product (GDP).
Consider the market for medical doctors. Suppose the opportunity cost of going to medical school increases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium wage for doctors will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium wage.
Federal Reserve monetary policy goals include..
What will be an ideal response?
The slope of a line is zero when it is:
A. a downward-sloping line that makes a 45-degree angle with the horizontal and vertical axes. B. an upward-sloping line that makes a 45-degree angle with the horizontal and vertical axes. C. vertical. D. horizontal.