Suppose firms in Hong Kong can produce 40,000 plastic dolls or 80,000 squirt guns each week, while firms in Taiwan can produce 40,000 plastic dolls or 40,000 squirt guns each week. Therefore
A) People in Hong Kong sacrifice two dolls for every squirt gun produced.
B) People in Taiwan sacrifice two dolls for every squirt gun produced.
C) People in Hong Kong sacrifice 2 squirt guns for every doll produced.
D) none of the above are true.
C
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In Keynes's liquidity preference framework
A) the demand for bonds must equal the supply of money. B) the demand for money must equal the supply of bonds. C) an excess demand of bonds implies an excess demand for money. D) an excess supply of bonds implies an excess demand for money.
Which of the following would increase the value of a firm's stock?
a. a decrease in the firm's present profit b. a decrease in the anticipated growth rate of future profits c. an increase in the perceived riskiness of future profits d. a fall in the interest rate e. an anticipated increase in the interest rate