Which of the following is the correct formula to calculate the GDP of a closed economy?
a. Y = C + I + G + (EX – IM)
b. Y = C + I + G
c. Y = C + I + G + T
d. Y = C + I + G + S
b
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Technological progress should lead to
A) an outward (rightward) shift in the investment function. B) an unchanged investment function. C) a downward movement of the investment function. D) less saving.
A decrease in Swiss interest rates will cause
A) an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B) a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C) an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D) a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
Why is it unlikely for even a very successful investor to continuously outperform the market?
a. Different investors have different risk appetites. b. Individual investors have independent strategies. c. The stock market is not subject to sufficient government regulations. d. Investors often mimic the strategies of the successful investor. e. The market is always inefficient.
Which of the following does not describe governmental policy actions that are helpful in supporting growth in an economy? Governmental policies that
A) avoid playing any role in developing communication systems. B) provide secure rights to private property. C) establish an independent court system that enforces contracts. D) facilitate the development of an efficient financial system.