The theory of portfolio choice suggests that the most important factor affecting the demand for domestic and foreign assets is
A) the level of trade and capital flows.
B) the expected return on these assets relative to one another.
C) the liquidity of these assets relative to one another.
D) the riskiness of these assets relative to one another.
B
Economics
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A key assumption in the classical model is
A) sticky wages. B) pure competition exists. C) sticky prices. D) the government plays a major role in economic problems.
Economics
The federal budget surplus recorded in 1998, resulted from a decrease in taxes and rapid growth in federal outlays
Indicate whether the statement is true or false
Economics