Briefly describe the three most widely followed stock indexes in the United States
What will be an ideal response?
1. The Dow Jones Industrial Average, which is an index of the stock prices of 30 large U.S. corporations.
2. The S&P 500, which is an index prepared by Standard & Poor's Corporation and includes the stock prices of 500 large U.S. firms.
3. The NASDAQ Composite Index, which includes the stock prices of more than 4,000 firms whose shares are traded in the NASDAQ stock market. NASDAQ is an over-the-counter market, meaning that buying and selling on NASDAQ is carried out between dealers who are linked together by computer. The listings on NASDAQ are dominated by high-tech firms such as Apple, Facebook, and Twitter.
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When the U.S. dollar decreases in value relative to foreign currencies, the ________.
A. demand for U.S. exports will increase B. supply of U.S. exports will remain constant C. supply of U.S. exports will decrease D. demand for U.S. exports will decrease
If a nation during its entire history has borrowed more from the rest of the world than it has lent to the rest of the world, the country is a
A) net borrower. B) debtor nation. C) net lender. D) creditor nation.
What are the determinants of investment spending?
What will be an ideal response?
If the inflation rate is 5 percent and the real rate of interest is 3 percent, the nominal interest rate is
A) 8 percent. B) 5 percent. C) 3 percent. D) 2 percent.