Which of the following is an advantage of an indexed equity mutual fund relative to a managed equity fund?
a. Indexed funds generally have better stock pickers.
b. Indexed funds engage in more detailed research.
c. Indexed funds have lower operating costs because they engage in less stock trading.
d. Indexed funds earn a significantly higher rate of return than a broad portfolio that represents the entire stock market.
C
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Why is collusion more likely in a repeated game?
What will be an ideal response?
The roles fulfilled by commercial banks and investment banks are:
A. often done by the same bank. B. always done by the same bank. C. not allowed to be done by the same bank. D. rarely done by the same bank.
What will happen in the long run if businesses in perfect competition are experiencing losses?
A. Some sellers will go out of business, causing supply to decrease and prices to fall. B. Some sellers will go out of business, causing demand to increase and prices to rise. C. Some sellers will go out of business, causing supply to decrease and prices to rise. D. Some sellers will go out of business, causing demand to increase and prices to fall.