If a company pays a dividend of $2 to be received one year from now, dividends are expected to grow at a rate of 3 percent per year for the indefinite future, and the interest rate is 4 percent, the price of the company's stock should be ________ per
share.
A) $3.40 B) $28.57 C) $200.00 D) $340.00
C
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Empirical evidence regarding the effects of devaluation on the balance of trade indicates that
A) devaluation generally improves the BOT. B) devaluation generally hurts the BOT. C) no strong generalizations are possible. D) devaluation has no effect on the BOT.
When a citizens' group opposes expansion of the prison located in town, the basis of the opposition is that the larger prison will produce
a. a negative externality for the community b. a positive externality for the community c. more jobs in the community d. tax revenue for the community e. improved criminal justice options
Which of the following would be the best government public policy to battle unemployment?
a. Minimize recessions b. Maximize unemployment payments c. Maximize unemployment insurance duration d. Minimize labor unions
If the consumption schedule is a straight line, it can be concluded that the
A. APC is equal to the MPC. B. MPC is constant at various levels of income. C. MPC is zero. D. APC is necessarily constant.