An increase in the expected rate of inflation will ________ the expected return on bonds relative to the that on ________ assets, everything else held constant
A) reduce; financial
B) reduce; real
C) raise; financial
D) raise; real
B
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The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S. ________ and the South Korean ________
A) GNP; GDP B) GDP; GDP C) GNP; GNP D) GDP; GNP
Dorothy likes to invest in gold as part of her overall financial investment portfolio, as her gut tells her it will increase dramatically in value. Her favorite and generally only source of investment advice is Wizard's Gold Hour on the OZ cable
channel. As a result of this advice, Dorothy's portfolio mix is suboptimal, as it is too heavily weighted in gold. Behavioral economists would say that Dorothy suffers from: A. framing effects. B. confirmation bias. C. self-serving bias. D. planning fallacy.