Will is risk averse and has $1,000 with which to make a financial investment. He has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option B is a low-risk stock that analysts expect to be worth about $1,102.50 in two years. Option C is a high-risk stock that is expected to be worth about $1,200 in four years. Will should choose
a. option A.
b. option B.
c. option C.
d. either option A or option B because Will is indifferent between those two options and they are superior to option C.
a
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Which of the following is a flow variable?
A) consumption B) savings C) wealth D) population
If the price of a resource increases, other things constant, less of that resource will be hired because
a. producers will substitute away from that resource b. producers fear starting a trend toward higher resource prices c. the demand curve for the product will shift to the left d. highly paid resources don't produce as much e. it makes other resources look expensive as well
If the Federal Reserve unexpectedly decides to sell bonds, which of the following will most likely happen in the short run?
What will be an ideal response?
A graph of the long-run aggregate supply curve is:
A. upsloping, and a graph of the short-run aggregate supply is horizontal. B. vertical, and a graph of the short-run aggregate supply is upsloping. C. horizontal, and a graph of the short-run aggregate supply is upsloping. D. upsloping, and a graph of the short-run aggregate supply is vertical.