Managed equity funds
A) that have yielded attractive returns during the recent past can generally be counted on to yield similar returns in the future.
B) are tied directly to either the Consumer Price Index or Producer Price Index.
C) generally outperform indexed equity mutual funds.
D) that yielded a high rate of return in the recent past often perform poorly in the future.
D) that yielded a high rate of return in the recent past often perform poorly in the future.
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In the simple Keynesian model which has no taxes and a saving function which is in the form S = -80 + .20Y, a $200 increase in desired investment leads to an increase in equilibrium income of
A) $40. B) $100. C) $400. D) $1000.
If a tax is proportional, the average tax rate
A. remains the same as income rises. B. rises as income rises. C. falls as income rises. D. falls as income falls.
How can actual investment be greater than desired investment, and what type of gap is the economy experiencing when this occurs?
What will be an ideal response?
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.