If the demand and supply curves for product X are stable, a government-mandated increase in the price of X will:
A. increase the supply of X and decrease the demand for X.
B. increase the demand for X and decrease the supply of X.
C. increase the quantity supplied of X and decrease the quantity demanded of X.
D. decrease the quantity supplied of X and increase the quantity demanded of X.
Answer: C
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The above figure illustrates
A) a recessionary gap. B) a full-employment equilibrium. C) an inflationary gap. D) an equilibrium at the economy's physical limits.
When accounting profits are negative, economic profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.
If you lost 10 percent on $200 worth of stock in a 2x margin account, then you would:
A. lose $20. B. gain $20. C. lose $40. D. gain $40.
Suppose a Canadian investor buys a one-year U.S. government bond that pays 7 percent interest. If the U.S. dollar appreciates 4 percent against the Canadian dollar during the year, what must be the yield on a comparable Canadian government bond for interest rate parity to hold?
a. 3 percent b. 4 percent c. 7 percent d. 10 percent e. 11 percent