Which of the following is part of an economic model?

The Capital Asset Pricing Model

A) is a way to formulate the cost of capital. B) is a way to calculate the weighted cost of capital. C) is a usual model for stock market investing. D) none of these choices

The Fed and the government are working against each other if, as the government cuts taxes to promote economic growth, the Fed

a. sells government securities. b. buys government securities. c. lowers the discount rate. d. lowers the prime rate.