The GDP deflator:
A. measures price changes for everything produced in the country.
B. may include goods produced abroad.
C. is computed using the quantities that are consumed in the economy each year.
D. is the same as PPI.
A. measures price changes for everything produced in the country.
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Differentiate between asset management companies and venture capital funds
What will be an ideal response?
Risk-averse individuals make risky investments
A) never. B) when the investment's expected return exceeds the return on a non-risky investment. C) when the investment's expected return adequately compensates for the risk. D) only when they are feeling irrational.
Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. At what level of output (number of households) is Fun Cable Company's total revenue maximized?
A. 2,500 B. 2,750 C. 5,000 D. Indeterminate from the given information.
Suppose the real money demand function isMd/P = 2400 + 0.2Y - 10,000 (r + ?e).Assume M = 4000, P = 2.0, ?e = .03, and Y = 5000. The real interest rate that clears the asset market is
A. 6%. B. 11%. C. 3%. D. 14%.