Which of the following is a risk that investors undertake when purchasing stocks?
a. An individual stock can rise and fall unpredictably.
b. Nearly all stocks in the stock market may rise or fall together, when expectations about the entire economy change.
c. Both a and b are true.
d. Neither a nor b is true.
C
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If aggregate supply keeps decreasing while aggregate demand does not change, there will come at time when
a. demand-dull inflation will occur b. cost-push inflation will occur c. demand-push inflation will occur d. cost-pull inflation will occur e. the economy will reach full employment
Data on trade barriers, income levels, and the growth of per capita GDP indicate that
a. there is no link between trade restrictions and either the per capita income levels or growth rates of economies. b. countries that impose high trade restrictions have both high income levels and rapid rates of economic growth. c. countries that impose high trade restrictions have low income levels, but they have been growing rapidly in recent decades. d. countries that have lower trade restrictions have both higher income levels and more rapid rates of economic growth than those with high trade barriers.