The vertical intercept of the Security Market Line is determined by the:
A. beta of the market portfolio.
B. discount rate.
C. risk-free interest rate.
D. risk premium.
C. risk-free interest rate.
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The above table has the demand for money schedule
a) If the Fed supplies $1.1 trillion dollars, what is the equilibrium interest rate? b) Discuss how equilibrium is restored if the interest rate is greater than the equilibrium rate found in part (a).
Suppose Afghanistan receives monthly gifts of food and other consumption goods from the world's nations. What effect will these gifts have on the Afghanistan’s labor market?
a. The demand for labor will rise. b. The wage will rise and employment will fall. c. Fewer jobs will be available and wages will be lower. d. The gifts will have no effect on the labor market.
What has been the effect of hydraulic fracturing?
A. increased Superfund payments and disbursements B. reduced reliance on fossil fuels C. increased availability on renewable energy D. increased production of and lower prices for natural gas and oil
The government deficit
A) is equal to the government surplus plus taxes minus government spending. B) is equal to GDP minus GNP. C) is equal to disposable income plus the current account surplus. D) is equal to the negative of government saving.