Communication between the teacher and parents should:
A. be a one-way communication.
B. occur when the teacher has a concern.
C. be mutually beneficial and a reciprocal relationship.
D. occur during parent-teacher conferences.
Answer: C. be mutually beneficial and a reciprocal relationship.
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"Plowback" is a preferred source of financing a corporation because
a. it is fairly easy, compared to issuing stocks. b. it is not subject to double taxation. c. selling bonds involves the high cost of money. d. stock markets are subject to random walks.
Figure 10-1
If the price level in Figure 10-1 were 110,
a.
inventories would be accumulating.
b.
firms would have to lower their prices.
c.
aggregate quantity demanded would equal aggregate quantity supplied.
d.
shortages of goods would exist.
If a lender wants to earn a real interest rate of 3% and expects inflation to be 3%, he/she should charge a nominal interest rate that:
A. is at least 7%. B. equals the real rate desired less expected inflation. C. equals the real rate desired plus expected inflation. D. is anything above 0%.
Suppose the marginal propensity to consume equals .8 (i.e., c1 = .8). Given this information, which of the following events will cause the largest increase in output?
A) G increases by 200 B) T decreases by 200 C) I increases by 150 D) both A and B