When people invest, they face a trade-off between which of the following?
a. a higher risk and higher return or a lower risk and lower return
b. a higher risk and lower return or a lower risk and high return
c. a higher risk and no change in the rate of return
d. the price and the interest rate
a. a higher risk and higher return or a lower risk and lower return
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In the small closed economy of San Lorena, the currency is the denar. Statistics for last year show that private saving was 60 billion denars, taxes were 80 billion denars, government purchases of goods and services were 70 billion denars, there were no transfer payments by the government, and GDP was 400 billion denars. What were consumption and investment in San Lorena?
a. 270 billion denars, 50 billion denars b. 250 billion denars, 60 billion denars c. 260 billion denars, 70 billion denars d. None of the above is correct.
Which of the following occurrences would NOT shift the demand curve for U.S. dollars in the foreign exchange market?
A) an increase in the U.S. exchange rate B) an increase in the expected future U.S. exchange rate C) an increase in U.S. interest rates D) an increase in foreign interest rates
Absentee landowners characterize the agrarian system of
(a) Asia. (b) Latin America. (c) Sub-Saharan Africa. (d) all of the above.
When Xt is strictly exogenous, the following estimator(s) of dynamic causal effects are available:
A) estimating an ADL model and calculating the dynamic multipliers from the estimated ADL coefficients B) using GLS to estimate the coefficients of the distributed lag model C) neither (a) or (b) D) (a) and (b)