Using the Gordon growth formula, if D1 is $2.00, ke is 12% or 0.12, and g is 10% or 0.10, then the current stock price is A) $20. B) $50. C) $100. D) $150. ANSWER C
Date: September 10th, 2020
Everything else held constant, an increase in government spending will cause A) aggregate demand to increase. B) aggregate demand to decrease. C) the quantity of aggregate demand to increase. D) the quantity of aggregate demand to decrease. ANSWER A
Date: September 10th, 2020
In the Governing Council, the decision of what policy to implement is made by A) majority vote of the Executive Board members. B) majority vote of the heads of the National Banks. C) consensus. D) majority vote of all members of the Governing Council. ANSWER C
Date: September 10th, 2020
A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of A) 8 percent. B) 10 percent. C) 12 percent. D) 14 percent. ANSWER A
Date: September 10th, 2020
At the point where a firm incurs diminishing marginal returns, total product will begin to decline. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Changes in the natural rate of unemployment are related to changes in the composition of the labor force and to the changes in the productivity of the economy over time. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When a lender refuses to make a loan, although borrowers are willing to pay the stated interest rate or even a higher rate, the bank is said to engage in A) coercive bargaining. B) strategic holding out. C) credit rationing. D) collusive behavior. ANSWER C
Date: September 10th, 2020
Which of the following instruments is NOT traded in a money market? A) residential mortgages B) U.S. Treasury Bills C) negotiable bank certificates of deposit D) commercial paper ANSWER A
Date: September 10th, 2020
In order to use lock-in as a competitive strategy, firm managers should be prepared to do all of the following except: A) invest in a given base of customers by giving concessions initially. B) avoid selling complementary products and access to the customer base. C) be the first to bring a new type of product […]
Date: September 10th, 2020
In the market for reserves, a lower discount rate A) decreases the supply of reserves. B) increases the supply of reserves. C) lengthens the vertical section of the supply curve of reserves. D) shortens the vertical section of the supply curve of reserves. ANSWER D
Date: September 10th, 2020
