With fixed exchange rates, the adjustment to changes in international monetary conditions comes through
A) exchange rate changes.
B) exchange rate changes and international money flows.
C) international money flows.
D) None of the above.
C
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Tom deposits funds in his savings account at the bank which is paying 3.5% interest. If he keeps his funds in the bank for one year he will have $155.25. What amount is Tom depositing?
A. $151.75 B. $147.50 C. $148.75 D. $150.00
By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid
A) corporate governance. B) conflict between the CFO and the CEO. C) the principal-agent problem. D) paying high salaries to their managers.
Using the Gordon growth model, a stock's current price will increase if
A) the dividend growth rate increases. B) the growth rate of dividends falls. C) the required rate of return on equity rises. D) the expected sales price rises.
The demand for labor under imperfect competition is
a. more elastic than the demand for labor under perfect competition. b. more inelastic than the demand for labor under perfect competition. c. the same as the demand for labor under perfect competition. d. perfectly inelastic.