Suppose that the tires of a certain tire manufacturer are discovered to be defective. Other things the same, this news would cause
a. the demand for this company's stock to decrease, so the price would rise.
b. the demand for this company's stock to decrease, so the price would fall.
c. the supply of this company's stock to decrease, so the price would fall.
d. the supply of this company's stock to decrease, so the price would rise.
b
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Detailed budgeting is not only time consuming, it reduces the flexibility of discretionary fiscal policy and is subject to political abuse
Indicate whether the statement is true or false
Which of the following represents real GDP?
A) GDP in constant dollars B) GDP in terms of goods C) GDP in base year dollars D) all of the above
Suppose Smith pays $100 to Jones
A. We can say with certainty that the GDP has increased by $100. B. We can say with certainty that the GDP has increased, but we cannot determine the amount. C. We can say with certainty that the nominal GDP has increased, but we can't say whether real GDP has increased or decreased. D. We need more information to determine whether GDP has changed.
Loans of the Federal Reserve Banks to commercial banks are:
A. A liability of the Federal Reserve Banks and of the commercial banks B. An asset of the Federal Reserve Banks and of the commercial banks C. A liability of the Federal Reserve Banks and an asset for commercial banks D. An asset of the Federal Reserve Banks and a liability for commercial banks