Good news about an economic indicator __________ the denominator and __________ the numerator in the stock price valuation formula
A) raises; raises
B) raises; lowers
C) lowers; raises
D) lowers; lowers
A
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Suppose the Bank of China permanently decreases its purchases of U.S. government bonds and, instead, holds more dollars on deposit at the Federal Reserve
Everything else held constant, a open market ________ would be the appropriate monetary policy action for the Fed to take to offset the expected ________ in the monetary base in the United States. A) purchase; decrease B) purchase; increase C) sale; decrease D) sale; increase
In a fixed exchange rate regime, the value of a currency is pegged to ________
A) an anchor currency B) a currency board C) a dirty float D) an interest rate standard such as the Treasury bill rate in the U.S.
Consider a firm with the following cost information: ATC = $15, AVC = $12, and MC = $14 . If we know that this firm has decided to produce Q = 20 by following the rule to maximize profits or minimize losses, then the price of the output is:
a. $12. b. $14. c. $15. d. $20.
Scarcity means that: a. resources are unlimited
b. human wants are limited. c. limited resources cannot satisfy all of our unlimited human wants. d. choices are unnecessary.