The practice of increasing a nominal quantity each period by an amount equal to the percentage increase in a specified price index is called:
A. indexing.
B. the Fisher effect.
C. a substitution bias.
D. deflating.
Answer: A
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A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
A firm's most recent annual dividend was $2 per share; its shares sell for $40 in the stock market, and the company expects its dividend to grow at a constant rate of 5% in the foreseeable future
Using the dividend growth (Gordon) model, what would you estimate its equity cost of capital to be?
In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold changes in the ______ direction as interest rates, while investment changes in the _____ as the quantity RGDP demanded
a. Same, same b. Same, opposite c. Opposite, same d. opposite, opposite
If the U.S. government imposes a quota on imports of jet planes, then
a. net capital outflow rises. b. net exports rise. c. the exchange rate rises. d. All of the above are correct.