If the Fed wants to increase AD, it should do which of the following?
A. Conduct open market purchases.
B. Raise the discount rate.
C. Lower capital gains tax rates.
D. Raise the required reserve ratio.
Answer: A
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What is the fastest growing component of consumption in the United States?
A) new home construction B) services C) nondurable goods D) durable goods
Which of the following is NOT true of an incomplete contract?
a. It discourages parties from acting opportunistically. b. It increases the cost of negotiation. c. It allows renegotiation among parties if certain events occur. d. It contains provisions for terminating the contract if certain events occur.
In the United States, long-term poverty, defined as a family having an income below the poverty line for eight or more years, is
a. common, affecting approximately 25 percent of all American families. b. common, affecting approximately 15 percent of all American families. c. uncommon, affecting approximately 8 percent of all American families. d. rare, affecting approximately 3 percent of all American families.
Suppose the price of one share of a particular stock rose from $10.15 to $12.05 over the course of a year, and the stock paid a dividend of $1.00 per share during the same year. What was the total return on the share of stock?
A. 8.9 percent B. 15.8 percent C. 28.6 percent D. 18.7 percent