The asset beta in the Capital Asset Pricing Model is a moderate number that measures
A) how sensitive the asset's return is to market movements.
B) how sensitive the asset's discount rate is to changes in inflation.
C) the risk premium on the stock market.
D) the risk premium on an individual stock.
A
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A contract can help a seller to receive better creditors to finance his/her inventory
Indicate whether the statement is true or false
The monopoly producer
A. sets MU equal to P. B. sets MR = MC. C. has MC > MU. D. sets MR = P.
The low point of the business cycle is the _____; the high point is the _____.
Fill in the blank(s) with the appropriate word(s).
"The U.S. government should not use my tax dollars to subsidize people on welfare"
A) is a positive economic statement because it simply describes one person's opinion. B) is a normative economic statement because it involves a value judgment about an economic policy. C) is a positive economic statement because it predicts that my tax dollars will go to welfare. D) is a normative economic statement because it is a scientific fact.