Jack is near retirement and worried that if the stock market falls he will not be able to wait to take his funds out, and will have to sell at the bottom of the market
Richard thinks the probability of a stock market downturn is the same, but he is only 40 and could therefore wait for another turnaround. They face the same budget line. Jack's risk/return indifference curve A) will be concave; Richard's will be convex.
B) will be convex; Richard's will be concave.
C) will be tangent to the budget line at a point to the left of Richard's.
D) will be tangent to the budget line at a point to the right of Richard's.
E) must still be tangent to the budget line at the same point as Richard's.
C
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What can be said about the comparison between the unemployment benefits offered in Europe and in the United States?
a. Unemployment benefits tend to be lower in Europe and are offered for shorter periods than in the United States b. Unemployment benefits tend to be higher in Europe and are offered for shorter periods than in the United States c. Unemployment benefits tend to be lower in Europe and are offered for longer periods than in the United States d. Unemployment benefits tend to be higher in Europe and are offered for longer periods than in the United States e. Unemployment benefits in Europe and the United States tend to be of similar magnitude and are offered for similar periods.
In contrast to the structural deficit, the cyclical deficit reflects
A. Changes in discretionary fiscal policy. B. Fluctuations in economic activity. C. Fiscal policy decisions. D. Changes in the "full-employment" deficit.
A budget deficit
A) occurs when government expenditures exceed tax revenues. B) occurs when tax revenues exceed government expenditures. C) occurs when transfer payments exceed tax revenues. D) will always result when Congress and the president cannot agree on expenditures. E) occurs when monetary policy works in the opposite direction of fiscal policy.
Each of the governors of the Federal Reserve System is appointed for a term of __________ years. The Board of Governors is comprised of _____________ members and the FOMC is comprised of __________ members
A) 12; 7; 19 B) 14; 6; 22 C) 6; 5; 14 D) 14; 7; 12 E) 12; 6; 12