Refer to the graph. Each labeled point represents a different asset. For which of these assets would we expect arbitrage to cause movement to a different point?
A. D and F.
B. G and H.
C. D, F, G and H.
D. D, E, and F.
A. D and F.
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Paul Romer's theory on the importance of knowledge differs from traditional theory in that Romer
A) argues, that investment is not important in promoting growth, but that the acquisition of knowledge is the sole determinant of economic growth. B) argues that an investment-knowledge cycle allows a once-and-for-all increase in investment to permanently raise a country's growth rate, while traditional theory argues that a once-and-for-all increase in investment leads to a higher standard of living but not to a higher growth rate. C) argues, that an investment-knowledge cycle exists which requires that investment rates keep increasing or else growth rates will fall, while traditional theory argues that growth rates will not fall, although they will not increase either. D) emphasizes investment rates while traditional theory emphasizes the importance of knowledge as a factor of production.
If workers accurately predict the rate of inflation, is there a short-run trade-off between inflation and unemployment, as predicted by the Phillips curve? Why or why not?
What will be an ideal response?
Firms deducting the asset's full cost at the time of acquisition from taxable income is called investment tax credit.
A. True B. False C. Uncertain
When economists say that money promotes ________, they mean that money encourages specialization and the division of labor
A) bargaining B) contracting C) efficiency D) greed