The income effect results in consumers increasing the quantity of normal goods demanded when the price falls
Indicate whether the statement is true or false
TRUE
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If a stock's dividend is expected to grow at a constant rate of 4 percent in the future
and it has just paid a dividend of $6.00 per share, and you have an alternative investment of equal risk that will earn a 7 percent rate of return, what would you be willing to pay per share for this stock? A) $6.66 B) $54.55 C) $200.00 D) $208.00
Goods that are both non-excludable and non-rival are referred to as _____
a. common resources b. natural resources c. public goods d. private goods
In the following equation, what does the symbol ? denote?
AE ? C + I + G + (X – M) a. The equation is an estimate. b. The equation is absolute. c. The equation is just a suggestion. d. The equation is just a definition.
Successful foreign aid programs:
A. enhance a DVC's resources and therefore shift its production possibilities curve to the left. B. enhance a DVC's resources and therefore shift its production possibilities curve to the right. C. move the DVC from a high-investment-low-consumption position to a low-investment-high- consumption position on its stable production possibilities curve. D. cause a DVC's exchange rate to depreciate.