If income changes, one would expect
A. the demand for a product to change.
B. the supply of a product to change.
C. both the demand for and the supply of a product to change.
D. to move from one point to another along the demand curve for the product.
A. the demand for a product to change.
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Which of the following would unambiguously generate inflation?
A) a decrease in aggregate demand accompanied by an increase in aggregate supply B) an increase in aggregate demand accompanied by a decrease in aggregate supply C) an increase in aggregate demand accompanied by an increase in aggregate supply D) a decrease in aggregate demand accompanied by a decrease in aggregate supply
As owner of a one-third share of a partnership, Josh is legally liable for
A) none of its debts. B) one-third of its debts. C) all of its debts. D) all of its taxes but none of its private debt.
Which of the following statements best describes the rational expectations hypothesis?
A) Individuals will not enter into long-term agreements unless they are certain about the payments they will receive. B) It is likely that individuals will consistently make errors. C) Individuals will make random errors, independent of previous errors. D) It is reasonable to expect individuals to consistently underestimate the level of inflation.
A. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 5%?
b. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 8%? c. If a stock is expected to pay an annual dividend of $20 this year, what is the approximate present value of the stock, given that the discount rate is 8% and dividends are expected to grow at a rate of 2% per year?